COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1939-01
Bill No.: SB 471
Subject: Taxation and Revenue - General; Insurance - General; Business and Commerce
Type: Original
Date: February 19, 2001
FISCAL SUMMARY
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| None | |||
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| None | |||
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials from the Department of Insurance (INS) assume the examination fee carryforward would not impact revenues until FY 2005. INS states the first year carryforward would be for 2003 taxes which would be filed in March, 2004. Any carryforward would impact revenues in FY 2005 which would be filed in March, 2005.
| FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
Small insurance companies that have excess examination fees would be fiscally impacted to the extent they could use the carryforward in future years.
DESCRIPTION
This proposal, for all tax years beginning on or after January 1, 2003, would prohibit refunding any amount deducted for examination fees which exceeds an insurance company's or association's premium tax liability. The proposal would allow such amounts to be carried forward until the deduction is claimed in full.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Insurance
Jeanne Jarrett, CPA
Director
February 19, 2001