Decreases the annual premium tax on certain vehicle insurance policies (EG DECREASE GF RV See Note)
Summary
HB 224 reduces the annual insurance premium tax applied to policies covering vehicle risks in Louisiana. Under current law, insurers pay a minimum annual tax of $185 when gross annual premiums are $6,000 or less, and $300 for each additional $10,000, or fraction thereof, above that threshold. The bill keeps the existing minimum tax in place for vehicle-related policies, but beginning July 1, 2026, lowers the higher-tier rate for those policies to $200 per additional $10,000 of gross annual premiums.
The change applies only to policies, contracts, or other obligations covering vehicle risks issued or executed on or after July 1, 2026. It does not alter the premium tax structure for other types of insurance, which remain subject to present law. In practical terms, the bill narrows its effect to vehicle insurance and vehicle-risk contracts while leaving the broader insurance premium tax framework intact.
Impact
HB 224 amends R.S. 22:831(A)(1) to create a separate premium tax rule for vehicle-risk insurance policies. For those policies, the bill lowers the marginal tax rate on gross annual premiums above $6,000 from $300 to $200 per additional $10,000, effective July 1, 2026. This reduces tax liability for insurers writing vehicle-related coverage and may indirectly affect premium pricing, insurer costs, and state premium tax revenue. All other insurance categories remain governed by existing law.
Sentiment
The available record suggests generally favorable or at least noncontroversial treatment of the bill. There are no recorded committee transcripts or floor votes showing opposition, and the only noted committee action was a technical amendment in the House Insurance Committee. The bill advanced in an engrossed form, indicating it was treated as a straightforward tax reduction measure rather than a contentious policy change.
Contention
The main policy issue is fiscal: the bill lowers a state tax on vehicle insurance premiums, which may reduce General Fund revenue, as reflected in the caption noting a decrease in GF revenue. Supporters would likely view the measure as targeted tax relief for insurers and potentially for policyholders if savings are passed through, while any concern would center on the loss of state revenue and the selective treatment of vehicle insurance compared with other insurance lines. No specific stakeholder objections or debate points are documented in the provided materials.
Redistricts the Louisiana Supreme Court to increase the composition of the court from seven to nine justices. (2/3 - CA5s4)(Item #3)(See Act) (EG INCREASE GF EX See Note)