HF 2501

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; insurance premiums; reducing the 
  1.3             rate on life insurance; amending Minnesota Statutes 
  1.4             2002, section 297I.05, subdivision 4, by adding a 
  1.5             subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 297I.05, 
  1.8   subdivision 4, is amended to read: 
  1.9      Subd. 4.  [MUTUAL PROPERTY AND CASUALTY COMPANIES WITH 
  1.10  TOTAL ASSETS LESS THAN $1,600,000,000 ON DECEMBER 31, 1989.] A 
  1.11  tax is imposed on mutual property and casualty companies that 
  1.12  had total assets greater than $5,000,000 at the end of the 
  1.13  calendar year but that had total assets less than $1,600,000,000 
  1.14  on December 31, 1989.  The rate of tax is equal to: 
  1.15     (1) two percent of gross premiums less return premiums on 
  1.16  all direct business received by the insurer or agents of the 
  1.17  insurer in Minnesota the tax under subdivision 14 for life 
  1.18  insurance, in cash or otherwise, during the year; and 
  1.19     (2) 1.26 percent of gross premiums less return premiums on 
  1.20  all other direct business received by the insurer or agents of 
  1.21  the insurer in Minnesota, in cash or otherwise, during the year. 
  1.22     [EFFECTIVE DATE.] This section is effective for premiums 
  1.23  received after June 30, 2004. 
  1.24     Sec. 2.  Minnesota Statutes 2002, section 297I.05, is 
  1.25  amended by adding a subdivision to read: 
  2.1      Subd. 14.  [LIFE INSURANCE.] A tax is imposed on life 
  2.2   insurance.  The rate of tax equals 1.5 percent of gross premiums 
  2.3   less return premiums on all direct business received by the 
  2.4   insurer or agents of the insurer in Minnesota for life 
  2.5   insurance, in cash or otherwise, during the year. 
  2.6      [EFFECTIVE DATE.] This section is effective for premiums 
  2.7   received after June 30, 2004.