Calif. Commissioner John Garamendi announced he is not appealing the Board of Equalization’s unanimous decision that overturned former Commissioner Low’s determination that the gross premium tax applies to workers’ compensation deductible reimbursements. “In the unlikely event we were able to convince the Board of Equalization to change its position and impose the tax on workers’ compensation deductibles, it is likely the insurance industry would sue the state leading to years of litigation and ultimately ending up in the Supreme
Court. With the workers’ compensation insurance market already in turmoil, more uncertainty is the last thing we need. This is an issue for the Legislature to decide,” Garamendi said. The California Department of Insurance will recommend to the Legislature this year that the gross premium tax be imposed on workers’ compensation deductibles in the future.
Topics Workers' Compensation
Was this article valuable?
Here are more articles you may enjoy.
Archdiocese of NY Finalizes $800M Fund for Sex Abuse Survivors; Avoids Bankruptcy 
Some 40% of Planned Data Center Capacity Is in States Wanting to Hit Pause 
Florida Appeals Court Bars Release of ‘Trade Secret’ Info in Heritage Claims Litigation 
Georgia, Florida Insurers Facing New Scrutiny, Regulations After Election From This Issue
