Ocean marine insurance

From the 2024 DOR Tax Exemption Study

48.14.020(4) - Ocean marine insurance Description Ocean marine and foreign trade insurers receive a preferential insurance premiums tax rate of 0.95% and a deduction for losses. Other domestic and foreign insurers pay a 2.0% insurance premiums tax without deduction for losses. Purpose To support ocean marine commerce. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $2.970 $3.180 $3.410 $3.660 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this insurance premiums tax preferential rate and deduction would exemption increase revenues. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $2.920 $3.410 $3.660 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 9.49% based on insurance premium data. Data Sources - Office of Insurance Commissioner, Insurance data Additional Additional Information Information Category: Business Year Enacted: 1947 Primary Beneficiaries: Ocean marine and foreign trade insurers Taxpayer Count: 79 Program