CO HB1111

Increases the unauthorized insurance premium tax rate from 2.25% to 3% to match the surplus lines insurance premium tax rate for nonadmitted insurers.

Declares the increase incidental rather than revenue-raising because its purpose is achieving tax parity between different insurance categories.

Classifies the increase as de minimis because the cost of holding an election would exceed the additional revenue generated by the 0.75% rate increase.

Takes effect January 1, 2024, unless a referendum petition is filed within 90 days after final adjournment, in which case voter approval at the November 2024 general election is required.

Applies to unauthorized insurance policies issued on or after the effective date of the act.