Tennessee: County Mutual Tax Correction No Longer ‘Behind the Budget’

Tennessee House Bill 1856, which would restore the tax "offset" previously available to county mutuals for certain investments within the state, is scheduled for discussion by the House Budget Subcommittee tomorrow. The action effectively removes the legislation from being "behind the budget" and places it on the path to passage.

Bill sponsor Rep. John Litz, David Braam, Tennessee Department of Commerce and Insurance legislative director, and Liz Reynolds, NAMIC's southeastern state affairs manager, met with Budget Subcommittee Chair Harry Tindell to explain the necessity of moving the bill even though it appeared to have a fiscal impact. Because the monies referenced in the fiscal note represent funds never collected, the bill can go forward apart from the budget. If HB 1856 had remained "behind the budget," it would not have been discussed until after budget discussions, which generally occur very late in the session.

Senate companion SB 2082 has already passed that body and has been sent to the House, so the process of completing the legislative process for this corrective language now should move quickly. This will help county mutuals continue their usual tax filing process without interruption and confusion.

Direct questions to NAMIC State Affairs Manager Liz Reynolds.

Posted: Tuesday, May 08, 2007 12:00:00 AM. Modified: Tuesday, May 08, 2007 2:44:35 PM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.