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HB 5403 — Surplus Lines Tax Revenue
by Government Operations Appropriations Subcommittee; and Rep. Ingram
This summary is provided for information only and does not represent the opinion of any Senator, Senate Officer, or Senate Office.
Prepared by: Appropriations Committee (AP)
The bill:
- Redirects the taxes on surplus lines insurance policies and independently procured coverages to deposit 8.8 percent of revenues into the Insurance Regulatory Trust Fund within the Department of Financial Services and 91.2 percent of revenues into the General Revenue Fund.
- Repeals the June 30, 2014, sunset of previous distribution of 100 percent to the General Revenue Fund.
The March 12, 2014, Revenue Estimating Conference estimated the Insurance Regulatory Trust Fund would receive $34 million, if no change was made to the distribution and the current provision of statutes is allowed to sunset. If the 2009 law distributing 100 percent of the revenue to the General Revenue Fund sunsets in 2014 as scheduled, 15.74 percent of the revenue would be deposited into the Insurance Regulatory Trust Fund.
The resulting fiscal impact of the bill is $19 million distributed to the Insurance Regulatory Trust Fund and an additional $15 million to the General Revenue Fund.
If approved by the Governor, these provisions take effect July 1, 2014.
Vote: Senate 39-0; House 117-0