House Bill No. 956 proposes a comprehensive overhaul of the insurance premium tax structure in Louisiana, transitioning from a graduated tax system to a flat rate of 2.8% on gross annual written premiums for property and casualty insurance policies. The bill introduces a mechanism for potential tax rate reductions, allowing the rate to decrease by 0.2% if total premium and retaliatory tax collections exceed $273 million in the previous year, with a minimum rate set at 1%. Additionally, it mandates that insurers clearly state premium taxes and associated fees on policy declaration pages, while exempting certain health maintenance organizations from this requirement.

The legislation also repeals the Louisiana Capital Companies Tax Credit Program and eliminates the tax credit for retaliatory taxes paid by specific domestic insurers. It establishes new definitions and criteria for "qualifying Louisiana investments," which include bonds, mortgages, and stocks in Louisiana-based entities, and outlines a schedule for tax reductions based on the proportion of these investments held by insurers. The provisions of the bill are set to take effect on January 1, 2026, and will apply to taxable periods beginning on or after that date, aiming to streamline the insurance premium tax process while encouraging local investment.

Statutes affected:
HB594 Original: 22:831(A)(1), 22:833(B)(2), 22:836(S, 22:842(A)(1), 22:855(A)(2), 22:2058(A)(3), 22:2092(B), 22:16(4), 22:836(B)
HB594 Engrossed: 22:831(A)(1), 22:832(A)(3), 22:833(B)(2), 22:842(A)(1), 22:855(A)(2), 22:2058(A)(3), 22:2092(B), 22:16(4), 22:832(D)
HB594 Reengrossed: 22:831(A)(1), 22:832(A)(2), 22:833(B)(2), 22:855(A)(2), 22:2058(A)(3), 22:2092(B), 22:16(4), 22:832(D)
HB594 Re-Reengrossed: 22:831(A)(1), 22:832(A)(2), 22:833(B)(2), 22:855(A)(2), 22:2058(A)(3), 22:2092(B), 22:16(4), 22:832(D)