HB164: increasing the gross premiums tax on insurance provided by certain unlicensed companies.

HB 164-FN-A - FINAL VERSION

2003 SESSION

03-0507

01/09

HOUSE BILL 164-FN-A

AN ACT increasing the gross premiums tax on insurance provided by certain unlicensed companies.

SPONSORS: Rep. Major, Rock 79

COMMITTEE: Ways and Means

ANALYSIS

This bill increases the gross premiums tax on insurance provided by certain unlicensed companies.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0507

01/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT increasing the gross premiums tax on insurance provided by certain unlicensed companies.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Annual Statement: Tax Increased. Amend RSA 405:29 to read as follows:

405:29 Annual Statement; Tax. [He] The licensee shall file with the commissioner, in January of each year, a sworn statement of the gross premiums charged for insurance procured or placed and the gross return premiums on such insurance cancelled under such license during the year ending on December 31 next preceding, and at the time of filing such statement shall pay to the state treasurer a sum equal to [2] 3 percent of such gross premiums less such return premiums reported.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

03-0507

12/18/02

HB 164-FN-A - FISCAL NOTE

AN ACT increasing the gross premiums tax on insurance provided by certain unlicensed companies.

FISCAL IMPACT:

The Insurance Department states this bill will increase state unrestricted revenue by $160,000 FY 2004 and by $320,000 in FY 2005 and each year thereafter. There will be no fiscal impact on state, county and local expenditure or county and local revenue.

METHODOLOGY:

The Department states this bill will increase state unrestricted revenue from the premium tax by $320,000 per year. The Department assumes that the insurance premiums for the insurance lines affected by this bill will total $32 million annually, and this total will remain constant and written equally throughout the year. The Department further states that assuming an effective date of July 1, 2003, this bill will generate a $160,000 increase in state unrestricted revenue, half the annual amount in FY 2004, the first year the bill is effective.