The Louisiana Legislature's Insurance Premium Tax Study Group convened on July 24, 2025, to discuss the state's premium tax collection history and the Department of Insurance's performance in 2024. The meeting highlighted a significant increase in premium tax revenues, which are crucial for state funding.

The Department of Insurance reported that it is the third-largest revenue collector for Louisiana, generating approximately $1.6 billion in total revenue, with $1.4 billion coming from premium taxes alone. Over the past five years, premium tax collections have risen from about $914 million in fiscal year 2019 to $1.4 billion in 2024, marking an increase of $486 million. This growth is attributed to various insurance lines, including managed care organizations, which contributed $787 million, and fire and casualty insurance, which added over $300 million to the general fund.

The meeting also provided a detailed breakdown of taxable premiums across different sectors. In 2024, Louisiana reported over $42 billion in taxable premiums, resulting in a gross tax liability of approximately $1.63 billion. After applying tax credits, the net tax collected was about $1.29 billion. Fire and casualty insurance was the largest contributor, with a net tax rate of 1.79%, while health maintenance organizations (HMOs) had the highest effective rate at 4.94%.

Tax credits played a significant role in reducing overall tax collections, totaling over $283 million, with fire and casualty insurers accounting for a substantial portion. The meeting underscored the importance of insurance taxation in Louisiana's fiscal landscape and the impact of tax credits on state revenue.

As the study group continues its work, the discussions from this meeting will inform future policies and regulations regarding insurance premium taxes in Louisiana.