AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO TAXES.

Plain English Breakdown

The effective date is listed as blank in the metadata, though standard practice suggests it becomes effective upon signature unless otherwise specified.

Fixing Tax Payment Rules for Insurance Groups

This law fixes a mistake in the Delaware tax code to make sure captive insurance companies and surplus lines brokers follow their own specific rules for paying taxes.

What This Bill Does

• Removes Sections 1917 and 6914 from the list of sections that must follow the general installment payment schedule in Section 702.
• Clarifies that captive insurance companies continue to pay taxes according to their specific rules under Section 6914.
• Clarifies that surplus lines brokers continue to pay taxes according to their specific rules under Section 1917.

Who It Names or Affects

• Captive insurance companies in Delaware
• Surplus lines brokers in Delaware

Limits and Unknowns

• The official text does not specify an exact effective date, only that it was signed by the Governor on April 14, 2025.
• The bill resolves a timing inconsistency but does not change how much tax these groups must pay.

Official Summary Text

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO TAXES.
This bill resolves an internal inconsistency in the Insurance Code regarding the timing of payment of taxes for captive insurance companies and surplus lines brokers. Sections 1917 and 6914 of the Insurance Code specifically address the amount and timing of taxes due for surplus lines brokers and captive insurance companies, respectively. Surplus lines brokers and captive insurance companies will continue to pay premium taxes in accordance with Sections 1917 and 6914, respectively, as they have historically.

Current Bill Text

Legislation Document

SPONSOR:

Rep. Bush & Sen. Mantzavinos

Sens. Poore, Walsh

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 7

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO TAXES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 702, Title 18 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 702. General premium tax; underwriting profits tax.

(d) The taxes imposed under this section and §§ 703, 704,

707, 1917 and 6914

and 707

of this title shall be payable as follows:

Fifty percent of the estimated tax liability for the current year shall be paid on April 15 of the current year, and the balance of the estimated tax shall be paid in installments as follows: 20% on June 15 of the current taxable year; 20% on September 15 of the current taxable year; 10% on December 15 of the current taxable year; and the remaining balance to be paid on March 1 of the following year.

SYNOPSIS

This bill resolves an internal inconsistency in the Insurance Code regarding the timing of payment of taxes for captive insurance companies and surplus lines brokers. Sections 1917 and 6914 of the Insurance Code specifically address the amount and timing of taxes due for surplus lines brokers and captive insurance companies, respectively. Surplus lines brokers and captive insurance companies will continue to pay premium taxes in accordance with Sections 1917 and 6914, respectively, as they have historically.