HMO GROSS PREMIUMS TAX EXEMPTION                                              H.B. 4950 & 5047:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

House Bills 4950 and 5047 (as reported without amendment)

Sponsor:  Representative Hank Vaupel

House Committee:  Tax Policy

Senate Committee:  Finance

CONTENT

House Bill 4950 would amend the Income Tax Act to exempt health maintenance organizations (HMOs) authorized under Chapter 35 of the Insurance Code from the tax imposed on insurance companies.

House Bill 5047 would amend the Income Tax Act to exclude from the definition of "insurance company" an HMO authorized under Chapter 35 of the Insurance Code.

Each bill would be retroactive and effective for tax years beginning on and after January 1, 2016.

MCL 206.635 (H.B. 4950)                                          Legislative Analyst:  Drew Krogulecki

       206.607 (H.B. 5047)

FISCAL IMPACT

The bills would have no fiscal impact because they would codify existing practice and statutory interpretation.

Date Completed:  1-17-18                                                         Fiscal Analyst:  David Zin

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.