When Colorado legislators on June 8 introduced changes to the state’s tax laws that would impact insurance companies, consumers, and retirement savers, NAIFA’s state advocacy team sprang to action. The original version of the “Adjust Tax Expenditures For State Education Fund Act” (HB20-1420) would have expanded the state’s tax on some insurance premiums to include a broader range of annuity products. It also would have removed a credit applied to existing premium taxes for insurance companies that maintain home offices in Colorado.
NAIFA-CO submitted testimony opposed to expanded annuity tax. The testimony argues that the increased tax would impact vulnerable Coloradans who receive annuities due to injury settlements and retirees who rely on annuity payments to provide income. NAIFA also sent a letter, along with other industry advocacy groups active in Colorado, opposed to the section of the legislation that would have increased taxes on annuities.
The NAIFA-CO grassroots team also reached out to legislators personally to explain why the proposals would be harmful to consumers and why increasing taxes on an insurance industry that already pays its fair share is not a good idea, particularly in light of the COVID-19 economic impact.
Over the weekend, the Colorado legislature voted to remove the sections of the legislation that would have impacted annuity recipients and insurance companies.
“Our NAIFA-Colorado members and leaders did a fantastic job heading off proposals that would have hurt Colorado consumers at a time when they are particularly vulnerable,” said NAIFA CEO Kevin Mayeux. “Increasing taxes on annuity income for retirees and people who are unable to work could have been catastrophic for many already struggling with an uncertain economy. NAIFA is very grateful to the members of the Colorado legislature who heard our concerns and removed the expanded annuity tax for the benefit of their constituents.”