Effective July 1, premium taxes on worker's compensation insurance policies will increase because of passage of a bill by the 1988 Legislature to ensure the Worker's Reinsurance Fund (ormerly the Second Injury Fund) won't become insolvent.

Utah Insurance Commissioner Harold C. Yancey said premium taxes on non-government agencies will increase from 3.75 percent to 8 percent and premium taxes on state and local government agencies will increase from 3.5 percent to 7.75 percent.By necessity, the premium tax is being passed through to the insurance companies in the form of an overall 6.24 percent increase that will be effective the same day.