The Business Council strongly opposes this bill, which would impose a fifty-percent franchise tax on business-owned life insurance benefits.

Many businesses purchase what is commonly known as corporate owned life insurance (COLI) on their most highly compensated employees for a variety of reasons. The purpose of COLI is to protect businesses from the loss of an owner or key employee whose talents are essential to the success of the company. The benefits from the life insurance policy assist the business to meet its future obligations including retirees’ health care benefits, retirement plans and other costs.

To read the bill memo click here.