Bill Text: IA HF2121 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to the taxation of captive companies, and including effective date provisions.(Formerly HSB 535; See HF 2636.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-03-20 - Withdrawn. H.J. 633. [HF2121 Detail]
Download: Iowa-2023-HF2121-Introduced.html
House
File
2121
-
Introduced
HOUSE
FILE
2121
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
HSB
535)
A
BILL
FOR
An
Act
relating
to
the
taxation
of
captive
companies,
and
1
including
effective
date
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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2121
Section
1.
Section
432.1A,
subsection
2,
paragraph
c,
Code
1
2024,
is
amended
to
read
as
follows:
2
c.
The
amount
of
reinsurance
tax
due
from
a
captive
company
3
under
paragraph
“a”
shall
be
calculated
as
follows:
4
(1)
Two-tenths
Two
hundred
thousandths
of
one
percent
on
the
5
first
twenty
million
dollars
of
assumed
reinsurance
premiums
6
written
.
7
(2)
One-eighth
One
hundred
twenty-five
thousandths
of
one
8
percent
on
the
twenty
million
dollars
of
assumed
reinsurance
9
premiums
collected
written
after
the
first
twenty
million
10
dollars
of
assumed
reinsurance
premiums
collected
written
under
11
subparagraph
(1).
12
(3)
Five
Forty-five
thousandths
of
one
percent
on
each
13
dollar
the
twenty
million
dollars
of
assumed
reinsurance
14
premiums
collected
written
after
the
twenty
million
dollars
15
collected
written
under
subparagraph
(1)
and
the
twenty
million
16
dollars
collected
written
under
subparagraph
(2).
17
(4)
Twenty
thousandths
of
one
percent
of
each
dollar
of
18
assumed
reinsurance
premiums
written
after
the
twenty
million
19
dollars
written
under
subparagraph
(1),
the
twenty
million
20
dollars
written
under
subparagraph
(2),
and
the
twenty
million
21
dollars
written
under
subparagraph
(3).
22
Sec.
2.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
23
importance,
takes
effect
upon
enactment.
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
This
bill
relates
to
the
calculation
of
the
amount
of
28
reinsurance
tax
(tax)
due
from
a
captive
company.
29
The
bill
changes
the
amount
of
tax
due
from
a
captive
company
30
on
the
first
$20
million
of
assumed
reinsurance
premiums
31
from
two-tenths
of
1
percent
to
two
hundred
thousandths
of
1
32
percent;
the
amount
of
tax
due
on
the
$20
million
of
assumed
33
reinsurance
premiums
written
after
the
first
$20
million
of
34
assumed
reinsurance
premiums
are
written
from
one-eighth
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H.F.
2121
of
1
percent
to
one
hundred
twenty-five
thousandths
of
1
1
percent;
and
the
amount
of
tax
due
on
each
dollar
of
assumed
2
reinsurance
premiums
written
after
the
first
$40
million
of
3
assumed
reinsurance
premiums
from
5
percent
on
each
dollar
to
4
forty-five
thousandths
of
1
percent.
5
The
bill
creates
a
new
tier
of
reinsurance
tax
due
on
each
6
dollar
of
assumed
reinsurance
premiums
after
the
first
$60
7
million
of
assumed
reinsurance
premiums
in
the
amount
of
twenty
8
thousandths
of
1
percent
of
each
dollar.
9
The
bill
takes
effect
upon
enactment.
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