Senate Bill No. [number], introduced by M. Noland at the request of the State Auditor, aims to revise the laws governing the payment of taxes by captive insurers and special purpose insurers in Montana. The bill amends Section 33-28-201 of the Montana Code Annotated (MCA) to clarify the tax obligations of captive insurance companies regarding direct premiums and assumed reinsurance premiums. Notably, the bill establishes a minimum tax of $5,000 for captive insurance companies if their calculated taxes fall below this threshold, with provisions for prorating this amount based on the timing of authorization or surrender of the company's certificate of authority.

Additionally, the bill introduces new provisions that exempt certain types of captive insurance companies from the previously established cap on aggregate taxes, which was set at $100,000 per year. Specifically, protected cell captive insurance companies and special purpose captive insurance companies with a series of members are not subject to this cap. The bill also defines "common ownership and control" for taxation purposes and stipulates that the tax must be calculated annually, even for multiyear insurance contracts. The new provisions will take effect for tax years beginning after December 31, 2025.

Statutes affected:
LC Text: 33-28-201
SB0060_1(1): 33-28-201
SB0060_1(2): 33-28-201
SB0060_1(3): 33-28-201
SB0060_1(4): 33-28-201
SB0060_1(5): 33-28-201
SB0060_1: 33-28-201