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Member, Beacon International Group, Ltd.
Georgia Gov. Nathan Deal has signed into law legislation that will slash premium taxes paid by captive insurers licensed in the state.
Under the new law, which goes into effect July 1, Georgia’s captive tax rate will be cut to 0.4% on the first $20 million in premiums and 0.3% on premiums above $20 million.
In addition, the law will cap at $100,000 a year the maximum premium taxes captives will pay in a year.
That’s a big change from prior law, which had captives paying the same 4.75% tax rate as commercial insurers.
Georgia had nine captives at year-end 2014, down from 13 the prior year.
Vermont Gov. Peter Shumlin is expected to sign legislation Thursday making a series of changes to the state's captive statute.