Pensions, annuities, profit-sharing plans

From the 2024 DOR Tax Exemption Study

48.14.020(1)(a); 48.14.021 - Pensions, annuities, profit-sharing plans Description Premiums received from policies or contracts issued in connection with a pension, annuity, or profit-sharing plan that is qualified under the Internal Revenue Code are exempt from insurance premiums tax. Most of the revenue impact is associated with annuities. Insurance companies receive little income related to pensions or profit-sharing plans. Purpose To support pensions, annuities, and profit-sharing plans. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $136.420 $141.970 $147.760 $153.780 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $130.139 $147.760 $153.780 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. - The growth rate reflects the compound annual growth rate of 4.1% based on insurance premium data. - Most of the revenue impact is associated with annuities, and insurers have little income r