This bill amends Section 33-28-201 of the Montana Code Annotated to revise the tax structure for captive insurance companies and special purpose insurers. It establishes a tax on direct premiums collected by captive insurance companies, with a tiered rate of 0.4% on the first $20 million and 0.3% on subsequent amounts. Additionally, it introduces a tax on assumed reinsurance premiums, with rates of 0.225% on the first $20 million, 0.150% on the next $20 million, and 0.050% on amounts beyond that. The bill also sets a minimum tax of $5,000 for captive insurance companies, with prorated amounts based on the quarter of authorization or surrender of the certificate of authority.

Furthermore, the bill specifies that the aggregate taxes for captive insurance companies cannot exceed $100,000 per year, with exceptions for protected cell captive insurance companies and special purpose captive insurance companies with a series of members. It clarifies that multiple captive insurance companies under common ownership and control will be taxed as a single entity. The provisions of this act will apply to 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(6): 33-28-201
SB0060_1(7): 33-28-201
SB0060_1: 33-28-201
SB0060_X(1): 33-28-201
SB0060_X(2): 33-28-201
SB0060_X(3): 33-28-201
SB0060_X(4): 33-28-201
SB0060_X(5): 33-28-201
SB0060_X: 33-28-201