Insurance producers, title insurance agents, and surplus line brokers

From the 2024 DOR Tax Exemption Study

82.04.260(9) - Insurance producers, title insurance agents, and surplus line brokers Description Insurance producers, title insurance agents, and surplus line brokers receive a preferential B&O tax rate of 0.484% on income received, rather than the service and other activities B&O tax rate of 1.5% or 1.75%. Purpose Reduces the impact of B&O surtaxes on insurance contractors because they were unable to raise commissions to cover tax increases in the short term. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $30.870 $37.830 $39.090 $40.370 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this B&O tax preferential rate would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $34.680 $39.090 $40.370 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the wholesale B&O taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. Data Sources - Department of Revenue, Excise tax data - Economic and