Author : Albert Feuer
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (137 download)
Book Synopsis State Tax Laws Withstand Most ERISA Preemption Challenges After 'Gobeille' and 'Self-Insurance Institute of America' by : Albert Feuer
Download or read book State Tax Laws Withstand Most ERISA Preemption Challenges After 'Gobeille' and 'Self-Insurance Institute of America' written by Albert Feuer and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: On March 1, 2016, the Supreme Court held, in Gobeille v. Liberty Mut. Ins. Co., (“Gobeille”), that ERISA preempted a Vermont law to the extent the Vermont law requires an ERISA plan, its third party administrator, or its insurer to report benefit payments and other information relating to healthcare services to a state agency so that Vermont may compile an all-inclusive healthcare database. On March 6, 2016, the Supreme Court, in Self-Insurance Institute of America v. Snyder, vacated a Sixth Circuit decision that ERISA did not preempt either a Michigan state tax of one-percent of the benefits paid by a group health plan, its third party administrator or its insurer, or the law's reporting and record-keeping compliance requirements. On July 1, 2016, the Sixth Circuit reaffirmed its approval of the state law. Gobeille and the Sixth Circuit reaffirmance suggest that ERISA permits a wide variety of state tax laws to be applied to ERISA plans including the reporting and record-keeping requirements used to enforce those laws. In particular, ERISA will not preempt the state tax law if the law is not in effect a mandate of a benefit structure, substantive coverage, or choice of an insurer. Thus, ERISA permits states to tax all, some, or none of (1) the gross receipts of an ERISA plan; (2) the gross benefit payments of an ERISA plan; (3) the loans of an ERISA plan; (4) the net income of an ERISA plan, although it is unclear whether any ERISA plan may be taxed more favorably than other income earners; and (5) the property owned by an ERISA plan, although it is unclear whether any ERISA plan may be taxed more favorably than other property holders. Incidental reporting and record-keeping requirements to enforce these state tax laws are preempted only to the extent the requirements intrude upon relations among the traditional ERISA plan entities, including the principals, the employer, the plan, the plan fiduciaries, and the beneficiaries.
