Oklahoma’s governor Kevin Sitt has signed HB 3864 into law, which sets out how premium taxes by captive insurers should be distributed within the state of Oklahoma.
The bill, which was signed on 19 May 2020, stated that the first $500,000 of tax collected from captive insurance companies, 36 percent will be distributed to Oklahoma firefighters pension and retirement fund, 14 percent to the Oklahoma police pension and retirement fund, five percent to the law enforcement retirement fund, and 45 percent to the general revenue fund.
It also noted that 100 percent of the next $250,000 collected will be sent to the Oklahoma Insurance Department for administering the Oklahoma captive insurance company act.
Any taxes collected that is the excess of $750,000, a further 36 percent will be sent to the Oklahoma firefighters pension and retirement fund, 14 percent to the Oklahoma police pension and retirement fund, 5 percent to the law enforcement retirement fund, 15 percent to the general revenue fund, and 30 percent to the Oklahoma Insurance Department.
The bill outlined the distribution of captives taxes will start for the fiscal year beginning 1 July 2020, and for each fiscal year thereafter.
Commenting on the new law, Jerry Messick, CEO of Elevate Risk Solutions, said: “The public usually doesn't know how these funds affect a State. In Oklahoma's case, the Oklahoma firefighters fund, the state police pension and retirement system, as well as the law enforcement retirement fund all benefit from captives electing to domicile in Oklahoma.”
“Commissioner [Glen] Mulready's commitment to captives in Oklahoma ensures these benefits will continue to be a positive effect for many years to come,” he added.
According to the Captive Insurance Times Domicile Guidebook, Oklahoma had 47 captive insurance companies established within the state at the end of 2019.
