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Back to HB 1665
Arkansas General Assembly· HB 1665Died in House Committee at Sine Die adjournment.

An act TO AMEND THE LAW CONCERNING THE INSURANCE 10 PREMIUM TAX, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas           As Engrossed: H3/17/25 H4/2/25
2 95th General Assembly
                                       A Bill

3 Regular Session, 2025                                            HOUSE BILL 1665

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5 By: Representative Wardlaw

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8                             For An Act To Be Entitled

9               AN ACT TO AMEND THE LAW CONCERNING THE INSURANCE

10              PREMIUM TAX; TO REPEAL THE CREDIT ALLOWED AGAINST THE

11              INSURANCE PREMIUM TAX FOR ACCIDENT AND HEALTH

12              COMPREHENSIVE HOSPITAL AND MEDICAL COVERAGE BASED ON

13              THE SALARY AND WAGES OF THE EMPLOYEES OF THE INSURER;

14              AND FOR OTHER PURPOSES.

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16

17                                       Subtitle

18                       TO REPEAL THE CREDIT ALLOWED AGAINST THE

19                       INSURANCE PREMIUM TAX FOR ACCIDENT AND

20                       HEALTH COMPREHENSIVE HOSPITAL AND

21                       MEDICAL COVERAGE BASED ON THE SALARY AND

22                       WAGES OF THE EMPLOYEES OF THE INSURER.

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24 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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26  SECTION 1. Arkansas Code � 26-57-604(a)(1)(B), concerning the credit

27 allowed against the premium tax based on the salary and wages of the

28 employees of the insurer, is amended to add an additional subdivision to read

29 as follows:

30                            (iv) The credit shall not be applied as an offset

31 against the premium tax on collections reported as individual or group

32 comprehensive medical or hospital coverage.

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34  SECTION 2. Arkansas Code � 26-57-604(a)(2)(A) and (B), concerning the

35 credit allowed against the premium tax based on the salary and wages of the

36 employees of the insurer, are amended to read as follows:

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    As Engrossed: H3/17/25 H4/2/25                                          HB1665

1   (2)(A) The offset shall not reduce the accident and health

2 premium tax due by more than the following amounts:

3                         (i) For tax years beginning before January 1, 2021,

4 eighty percent (80%);

5                         (ii) For the tax year beginning January 1, 2021,

6 seventy percent (70%);

7                         (iii) For the tax year beginning January 1, 2022,

8 sixty percent (60%); and

9                         (iv) For tax years beginning on and after January 1,

10 2023, fifty percent (50%).

11  (B) Beginning January 1, 2020, an An authorized accident

12 or health insurer shall not receive a credit under this subsection that

13 exceeds an annual total of eighteen million dollars ($18,000,000).

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15  SECTION 3. Arkansas Code � 26-57-604(a)(4), concerning the credit

16 allowed against the premium tax based on the salary and wages of the

17 employees of the insurer, is amended to read as follows:

18  (4)(A)(i) Except as provided in subdivision (a)(4)(B) of this

19 section, on or before March 1 of each year, any such authorized life or

20 accident and health insurer, including health maintenance organizations,

21 desiring to qualify under this provision shall furnish the appropriate data

22 and request on forms prescribed by the commissioner.

23                        (ii) For purposes of calculating the taxes under ��

24 23-63-102 -- 23-63-104, an insurer qualifying for a credit under this section

25 shall compute the tax due under �� 23-63-102 -- 23-63-104, if any, by using an

26 Arkansas premium tax rate of two and one-half percent (2�%).

27  (B)(i) Subdivision (a)(4)(A) of this section shall only

28 apply for tax years beginning prior to January 1, 2000.

29                        (ii) By On or before March 1 of each year, an

30 authorized life or accident and health insurer, including health maintenance

31 organizations, desiring to qualify under this provision shall furnish the

32 appropriate data and request on forms prescribed by the commissioner.

33                        (iii)(B) However, for purposes of calculating the

34 taxes under �� 23-63-102 -- 23-63-104, an insurer qualifying for a credit

35 under this section shall compute the tax due under �� 23-63-102 -- 23-63-104,

36 if any, by using an Arkansas premium tax rate of two and one-half percent

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    As Engrossed: H3/17/25 H4/2/25                               HB1665

1 (2�%) without regard to the credit specified in this section.

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3                                   /s/Wardlaw

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