Amended SB 0890 continues to progress through Maryland General Assembly

Senate Bill 0890 (SB0890) is continuing to make its way through the Maryland General Assembly, after being introduced by State Senator Dawn Gile (pictured).

However, following discussions within the General Assembly as to the viability of aspects of the bill, Senator Gile has now amended it. 

The bill, entitled ‘Insurance - Captive Insurers - Premium Receipts Tax Moratorium and Study’, suspends for a certain period of time the charge and collection of a certain premium receipts tax and related fees, penalties, and interest on lawfully procured captive insurance by nonprofit entities located in the State.

It also requires the Maryland Insurance Administration to conduct a study on the use, regulation, and taxation of captive insurance companies by entities in the State and report its findings and recommendations to the Governor and the Senate Finance Committee and the House Health Committee by December 1, 2027.

A two year pause in the collection of taxes from captive entities has also been proposed in the latest version of the Bill, which was sent by Senator Gile’s staff to Captive International.

The Bill has been passed by the Maryland State Senate and is now in the House for discussion. If it passes the committee stages of the legislative process it will then go to the desk of Maryland Governor Wes Moore.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.