HB 678 phases in the tax reduction from 2- to 1-percent over 4 1/2 years. The bill contains an accelerated payment mechanism requiring the companies to pay the tax quicker than current law requires. The Senate did this to create an additional $1.3 million for the state coffers. The Senate also expanded the Department of Insurance obligation to pursue the redomestication of insurers to New Hampshire. The final bill also requires detailed reporting on jobs retained and created by this legislation.
Governor Lynch has once again demonstrated a keen awareness of the need for good paying jobs if New Hampshire is going to continue to lead the region’s economy. Governor Lynch has positioned New Hampshire as a destination resort for insurance companies which provide good paying jobs. Attorney Donald Pfundstein said that “Governor Lynch is not only a great leader and business person but as an avid sports fan and coach he obviously knows a home run when he sees one.” Pfundstein worked on the bill with the firm’s chief economist, Dr. Lisa K. Shapiro.
Read more about the premium tax reduction and the economic activity it will create: Premium Tax Reduction Creates Substantial Economic Activity.
*Donald J. Pfundstein is admitted in New Hampshire.