EXEMPTIONS FROM STATE TAXATION.

SEC. 332. EXEMPTIONS FROM STATE TAXATION. (a) Exemption.— Section 769 is amended by adding at the end the following new subsection: “(g) (1) No tax, fee, or other monetary payment may be imposed or collected by any State, or by any political subdivision or other governmental authority of a State, on or with respect to any premium paid under an insurance policy purchased under this subchapter. “(2) Paragraph (1) of this subsection shall not be construed to exempt any company issuing a policy of insurance under this subchapter from the imposition, payment, or collection of a tax, fee, or other monetary payment on the net income or profit accruing to or realized by that company from business conducted under this subchapter, if that tax, fee, or payment is applicable to a broad range of business activity.”. (b) Effective Date.— The amendment made by subsection (a) shall take effect with respect to premiums paid for periods beginning after June 30, 1988.