Malloy: Budget plan will lower taxes for insurance industry

(AP Photo/Jessica Hill)

HARTFORD, Conn. (AP) — Gov. Dannel P. Malloy says his two-year state budget proposal will reduce taxes for Connecticut‘s insurance industry.

The Democrat said Monday he wants to lower the tax rate that insurers pay on premiums from 1.75 percent to 1.5 percent. Malloy is scheduled to unveil his new budget on February 8.

A total of 49 states and Washington, D.C. have some form of a premium tax. Connecticut-based insurers pay the rate in the state where they are doing business or Connecticut’s rate, whichever is higher.

By lowering Connecticut’s rate to 1.5 percent, Malloy says the tax liability for Connecticut-based insurers conducting business in states with lower tax rates will be significantly reduced.

Malloy says restructuring and lowering Connecticut’s premium tax will help the insurance industry and save them millions in taxes.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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