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

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

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

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

The bill phases in the reduction for insurers domiciled in New Hampshire.

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

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

According to PCI, states that have lowered their insurance premium taxes have experienced economic gains as insurers have moved to incorporate in those states.

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

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

Special Reports /

Premium Tax Reduction Advances In N.H.

Related Stories

Recommended For You