Maryland SB890 exempts certain nonprofit health care systems and hospitals from the State insurance premium receipts tax.

Maryland SB890 modifies the State insurance premium receipts tax by exempting premiums on lawfully procured captive insurance by nonprofit health care systems and hospitals located in the state. This includes premiums paid by the system’s parent entity, any subsidiary entity, or any constituent health care provider. The bill also prohibits the Maryland Insurance Administration from charging or collecting the tax from certain unauthorized insurers and certain fees, penalties, or interest accrued for failure to pay the tax before the effective date of this Act.

Maryland SB890 exempts certain nonprofit health care systems and hospitals from the State insurance premium receipts tax.

Maryland SB890 modifies the State insurance premium receipts tax by exempting premiums on lawfully procured captive insurance by nonprofit health care systems and hospitals located in the state. This includes premiums paid by the system’s parent entity, any subsidiary entity, or any constituent health care provider. The bill also prohibits the Maryland Insurance Administration from charging or collecting the tax from certain unauthorized insurers and certain fees, penalties, or interest accrued for failure to pay the tax before the effective date of this Act.