Current law, GS 105-228.5, imposes a tax on gross premiums of taxable contracts issued by insurers at a rate of 1.9% or 2.5%, depending on whether the contracts apply to liabilities under the Workers' Compensation Act.
Amends GS 105-228.5(d)(3) to now provide for an additional tax on insurers of 1.125% (was 0.74%) on gross premiums on insurance contracts for property coverage, imposing the tax on 10% of gross premiums from insurance contracts for automobile physical damage coverage and all gross premiums from all other contracts for property coverage. Modifies the allocation of net proceeds from the tax, now providing for 19% (was 20%) to be credited to the Volunteer Fire Department Fund, 16% (was 20%) to be credited to the Department of Insurance for disbursement pursuant to GS 58-84-25 (disbursement of tax proceeds to local firefighters' relief funds), up to 13% (was up to 20%) to be credited to the Workers' Compensation Fund, and the remaining to be credited to the General Fund. Effective July 1, 2019.
Bill S 349 (2019-2020)Summary date: Mar 25 2019 - More information
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