HB 2884 Summary

• Imposes a 4% general excise tax on death benefits and other gross income derived by providers of life settlement contracts, effective July 1, 2010.

• Tax applies when a life settlement contract owner dies, when the contract is transferred to the provider, or both.

• Defines "gross income" to include compensation or value derived from assignment, sale, gift, devise, or bequest of a settled policy.

• Exempts life insurance death benefits and certain other insurance proceeds from general excise tax, except for amounts received by life settlement contract providers.

• Bill sunsets on June 30, 2015, with provisions to preserve existing tax exemptions upon sunset and prevent reenactment after expiration.