Bill > SB32

This bill modifies tax rates and funding mechanisms for the Kansas insurance department by reducing premium tax rates for insurance companies and changing how the insurance department service regulation fund is managed. Specifically, the bill reduces the premium tax rate from 2% to 1.98% starting in tax year 2026, eliminates the requirement to remit 1% of taxes to the insurance department service regulation fund, and changes the date when fees and taxes will be remitted to the state treasurer from the current unspecified date to January 1, 2026. The legislation also adjusts how the insurance department is funded, moving away from a specific percentage-based funding model to a system where the total assessments on insurers will be equal to the amount approved by the legislature to fund the insurance company regulation program. The bill preserves existing provisions related to agent certification fees, tax deductions for returned premiums, and other administrative details while streamlining the funding mechanism for the insurance department. The changes are intended to reduce the tax burden on insurance companies while maintaining the operational funding for insurance regulation in Kansas.

Business and Industry

Assessment and Taxation (S)

https://kslegislature.gov/li/b2025_26/measures/sb32/