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Bill > HB1865


PA HB1865

PA HB1865
In insurance premiums tax, further providing for imposition of tax.


summary

Introduced
09/17/2025
In Committee
09/17/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties," in insurance premiums tax, further providing for imposition of tax.

AI Summary

This bill amends the Tax Reform Code of 1971 by increasing the insurance premiums tax rate for insurance companies doing business in Pennsylvania from 2% to 8% of gross premiums received from business within the state. The tax increase will apply to calendar years beginning after December 31, 2025, meaning the new 8% rate will first be effective for the 2026 calendar year. The bill provides for an immediate implementation of the legislation itself, while giving insurance companies advance notice of the coming tax rate change. By raising the tax rate on insurance premiums, the bill is designed to generate additional tax revenue for the Commonwealth of Pennsylvania from insurance companies operating within the state.

Committee Categories

Business and Industry

Sponsors (7)

Last Action

Referred to Insurance (on 09/17/2025)

bill text


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