MI HB4950

Imposes a tax of 1.25% on gross direct premiums written by insurance companies on property or risk located in Michigan.

Excludes from the tax base the first $190,000,000 of disability insurance premiums (other than credit and disability income insurance) written by each insurance company, with the exemption reduced by $2 for each $1 that the company's gross premiums exceed $280,000,000.

Exempts from the tax insurance companies authorized under chapters 46 or 47 of the insurance code, health maintenance organizations authorized under chapter 35 of the insurance code, and certain attorney-in-fact services provided to reciprocal insurers.

Makes the tax in lieu of all other privilege or franchise fees or taxes, except property taxes, sales taxes, use taxes, and other insurance code provisions.

Applies retroactively and effective for tax years beginning on or after January 1, 2016, with the act taking effect February 21, 2018.