TAX: Bail Bond Surcharge
IsSUE: 2% Surcharge on Face Value of Bail Bonds
BILL NUMBER(S):
SPONSOR(S):
MONTH/YEAR COLLECTIONIMPACT BEGINS: July 1,2003
DATE OF ANALYSIS: February 28,2003
SECTIONI: NARRATIVE
a. Current Law:
No surcharge is assessedon bail bonds.
b. Proposed Change:
This proposal assessesa 2% surcharge upon the face value of a bail bond.
SECTION2: DESCRIPTIONOF DATA & SOURCES
Department of Financial Services 2001 Bail Premium Data
February Demographic Estimating Conference
SECTION3: ASSUMPTIONS& RATIONALE
Ratio of gross premiums to net premiums for foreign companies is the same as domestic companies.
2001 data grown to 2003-04 & 2004-05 by population
Cash estimate assumesmonthly deposits with a one month lag.
SECTION 4: METHODOLOGY
SEEATTACHED SPREADSHEET
SECTION 5: IMPACT SUMMARY (DETAIlS ATTACHED)
FY 2003-04
State Imoact-All
Funds
FY
2003-04
Cash
Annualized
FY
2004-05
Cash
High
$21.2 million
$19.5
million
$21.6 million
Middle
$19.3 million
$17.7
million
$19.6 million
Low
$17.4 million
$15.9
million
$17.6 million
36
Company
Calendar Year 2001
Gross
Premiums
Received by
Net Premiums
Bondsmen
Written
Name
Accredited Surety and Casualty
Roche Surety & Casualty
Bankers Insurance Co
Capital Preferred Insurance Co
Total Domestic
16.6
12.9
8.9
2.0
40.4 I
I
?
0.4
?
?
0.5
I
51.9 I
Domestic Companies
404.0
Foreign Companies
519.4
Total Bail
2.8 I
0.7
0.9
0.1
1.0
Allegheny Insurance
American Bankers Insurance Co of FI
American Contractors Indemnity Co
Continental Heritage
Evergreen
American Surety
International Fidelity
Ranger Insurance
Safety National
Seneca
Total Foreign
1.2
0.9
0.7
I
923.4
37
I
3.6 I
6.4 I