A measure to phase in a reduction of New Hampshire's insurancepremium tax should be voted on this week in the State House ofRepresentatives, its sponsor said.

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The Premium Tax Reduction Bill (HB 678) sponsored by Rep. KevinL. Camm, R-E. Hampstead, was approved last week by the House Waysand Means Committee by a 15-2 vote after several hours of debateover the legislation's economic merits.

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Rep. Camm said he was hopeful the measure would pass the Houseduring Wednesday's session and be sent onto the Senate because thebill received a good committee recommendation.

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The representative said this is the second session he hassponsored the bill and it has had extensive work in both theCommerce and Ways and Means committees. "They've done some phasingto make it a little more palatable," he noted.

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The bill phases in the reduction for insurers domiciled in NewHampshire.

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Frank O'Brien, vice president, regional manager and counsel forthe Property Casualty Insurers Association of America, forecast themeasure would stimulate economic growth in the state.

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He said that over the past 10 years, New Hampshire has lostinsurance companies that were domesticated in the state. Reducingthe tax, according to Mr. O'Brien, will help to retain currentcompanies and recruit new companies.

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According to PCI, states that have lowered their insurancepremium taxes have experienced economic gains as insurers havemoved to incorporate in those states.

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States that lowered their insurance premium tax rates have foundthat investment by insurers in the form of new employment,acquisition of property and consumption of services have stimulatedeconomic growth, PCI added.

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"By reducing the insurance premium tax, New Hampshire will giveitself a competitive advantage over other states with higherrates," Mr. O'Brien said.

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