Increases the fire insurance premium tax on foreign and alien insurers.
Summary
Bill A06977 proposes an amendment to the New York insurance law, specifically increasing the fire insurance premium tax imposed on foreign and alien insurers. The bill seeks to raise the tax from one dollar to two dollars and eighty cents for every hundred dollars of premiums received by these insurers for fire insurance on properties located within New York State, excluding the cities of New York and Buffalo. This change aims to adjust the tax structure to potentially increase revenue from fire insurance premiums.
Impact
If enacted, the bill would modify the financial obligations of foreign and alien fire insurance companies operating in New York State, leading to an increase in the tax revenue collected from these entities. This could affect the pricing of fire insurance policies offered by these insurers, as they may pass on the increased costs to consumers. The bill specifically excludes foreign mutual fire insurance companies from this tax increase, which may create a disparity in the tax burden among different types of insurers.
Sentiment
The sentiment surrounding Bill A06977 appears to be neutral, as there have been no recorded votes or significant committee discussions available to indicate strong support or opposition. The lack of controversy or debate suggests that the bill may be viewed as a routine adjustment to tax policy rather than a contentious issue.
Contention
There are no notable points of contention reported in the discussions or voting history related to this bill. However, the exclusion of foreign mutual fire insurance companies from the tax increase could raise questions about fairness and equity among different types of insurers, although no specific opposition has been documented.