Iowa Senate Passes Premium Tax Reduction Bill

The state Senate passed March 27 Senate File 2318, which would cut the premium tax for property/casualty insurers from 2 percent to 1 percent over a four-year period, beginning in 2004.

National Association of Independent Insurers (NAII) Counsel Ann Weber said the legislation should attract more insurers to Iowa, which would benefit consumers. Enactment of the bill also would make Iowa more competitive with other states that have reduced their premium taxes in recent years, she said.