Governor Rick Snyder has signed legislation into law that deals with insurance tax.

House Bills 4950 and 5047, supported and advanced by Republican Rep. Hank Vaupel of Handy Twp., were among various measures signed into law by Governor Rick Snyder earlier this month. HB 4950 amends the Income Tax Act to clarify that Health Maintenance Organizations (HMO’s) are not subject to the insurance premiums tax. HB 4950 allows for an exemption for HMO’s authorized under the Insurance Code from the gross premiums tax. HB 5047 changes the definition of “insurer” to exclude an HMO.

The measures are now Public Acts 31 and 32 of 2018. An analysis by the Senate Fiscal Agency states the bills would have no fiscal impact because they would codify existing practice and statutory interpretation. Each bill is retroactive and effective for tax years beginning on and after January 1st, 2016. (JM)