Tennessee's enhanced bill clarifies the levy of a self-procurement tax. The state enacted relevant legislation long ago, requiring the tax to be levied on parent companies that cede premiums out of the state, but it was not strictly enforced in practice. The amendment passed in April 2015 clarifies the collection requirements and the 5% tax rate for this tax.
       Under Senate Bill 2402 and House Bill 2228, the procedure for captives to redomesticate is simplified, and it is proposed that captive insurers that redomesticate to Tennessee before December 31, 2018 will be exempt from the self-procurement tax payable for prior years.