The Indiana Senate joined with the House today, voting 49-0 to override Gov.Frank O’Bannon’s veto of legislation that lowers the state’s premium tax rate.
“With the veto override, the industry has achieved a significant victory that will mean a more competitive business environment,” said Robert Hurns, counsel for the National Association of Independent Insurers. “Lowering the premium tax was a top priority for NAII because it brings Indiana in line with neighboring states. Without this tax relief, Indiana insurance companies would be forced to pay millions in retaliatory tax penalties to other states.”
The legislation takes effect retroactive to January 1, 2001 and will reduce the premium tax from 2 percent to 1.3 percent over a five-year period. During the 2000 session, the bill was part of the Governor’s legislative package and passed both houses. However, it was vetoed due to a projected budget shortfall. As the fiscal picture improved, the Governor joined with the industry in the call for an override.
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