Observations on State Taxation of Casualty and Fire Insurance Companies

Although the public has been kept very well informed on the subject of the many services performed by insurance companies, there is one about which, although it is of major importance, surprisingly little has been published. This service, performed by every insurance carrier for each state to which it is admitted, is the collection of taxes from the policyholders and the accounting for and return of these taxes to the various state and local taxing authorities. This most important function is performed for the states, counties, and municipalities at practically no cost to the taxing bodies, provision for such taxes and the expenses incidental to collection, accounting for and returning them being included in the rates charged to policyholders.