Issue review : impact on the insurance premium tax rate reduction .

(2009) Issue review : impact on the insurance premium tax rate reduction . Legislative Services Agency (Legislative Service Bureau)

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1-21-09 Impact on the Insurance Premium Tax rate Reduction.mp3

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Abstract

In 2002, Senate File 2318, Insurance Premium Tax Reduction Act, the Iowa General Assembly approved a reduction in the insurance premium tax rate from 2 percent to 1 percent. The reduction was phased in at the rate of 1/4 percent annual increments over a five-year period, beginning with life and health insurance policy payments made on or after January 1st, 2003. Calendar year 2007 was the first year all premiums were taxed at 1 percent and fiscal year 2008 was the first full fiscal year at the 1 percent rate. Insurance premiums tax is paid only by insurance companies. The companies that benefit from the tax reduction are uniquely identified in government employment statistics. This allows for a unique opportunity to evaluate both the revenue impact and the employment impact of the tax rate reduction in Senate File 2318. This issue review focuses on the General Fund revenue impact of the rate reduction and the Iowa employment trends for the insurance industry since the rate reduction legislation was approved.

Item Type: Audio
Keywords: insurance taxes
Subjects: Business and industry
Business and industry > Insurance
Government finance and taxes
ID Code: 18850
Deposited By: Timothy Skeers
Deposited On: 09 Feb 2015 18:23
Last Modified: 09 Feb 2015 18:24
URI: http://publications.iowa.gov/id/eprint/18850