DIRECT PROCUREMENT TAX LAWS BY STATE

 

State Statutory Citation to Insurance Code Tax Rate Applied

Alabama
§27-10-35(c) 4% (within 30 days)


Alaska
§21.33.061(c) 3.7% (annually)
0.75% (wet marine, transportation)


Arizona
§20-401.07 3% (annually)(Industrial Insurance only)


Arkansas
§23-65-103(c) 2% (within 30 days after insurance procured,
continued or renewed)


California
§1760(b) Cal Ins. Code
Cal. Rev. & Tax Code §13201
Cal. Rev. & Tax Code §13210
3%
(Payable on or before the 1st day of the 3rd month following
the close of any calendar quarter during which a nonadmitted
insurance contract took effect or was renewed)


Colorado
§10-3-903(2)(d)
§10-3-209
§10-3-909
§10-5-111
§10-5-111.5
3% (annually)


Connecticut
§38a-271
§38a-277 (c)
4% (annually)
(excluding wet marine and transportation)


Delaware

18 § 1925(b) and (e)
18 § 1926(d)

3% (annually)



District of Columbia



Florida
§626.938(3) 5% plus 0.15% service fee payable to the FSLSO (Insured must also report the premium to the FSLSO using forms designated by the FSLSO or in a computer readable format.)


Georgia
§33-5-33(b) 4% (within 30 days)


Hawaii
§431:8-205(c) 4.68% (within 60 days)


Idaho
§41-1233
§41-1229
1.5% (within 30 days after insurance procured, continued or renewed)


Illinois
215 ILCS 5/121-2.08
3.5% (+ 1% fire marshal tax) (file within 90 days
of eff. date, pay within 30 days of filing)
0.2% stamping fee


Indiana


Iowa
§507A.9
§432.1 (4)(a) – (e)
1%


Kansas


Kentucky
§304.11-030
§304.11-050(1)
2% (annually)


Louisiana
§22:439 4.85% (quarterly at the annual rate)


Maine
Title 24-A
Title 36 §2531(2)
3% payable by insured


Maryland
§4-210
§4-211(b)(1)
3% (annually)


Massachusetts


Michigan
§500.1951 2%
0.5% (regulatory fee)
(within 30 days)


Minnesota
§60A.19(8)
§297I.05 (subd. 7)(b)
2% (annually) (except life insurance)


Mississippi
§83-5-61 4% premium tax and 5% non-admitted policy fee (for policies issued or renewed on or after 3/11/11; 3% for policies issued against fire, lightning or tornado)


Missouri
§384.051(6) 5% (annually)


Montana
§33-2-705 2.75% (annually)


Nebraska
§44-5515, §44-5506(4)(a)
3% (quarterly) (only with respect to exempt commercial purchasers)


Nevada
§680B.040
§680B.027(1)
3.5% (within 30 days)


New Hampshire
§405-B:6
§406-B:17(III)
§406-B:17-a
4% (annually)
2% (marine)


New Jersey
§17:22-6.64 5% (within 30 days)


New Mexico
§59A-6-2
§59A-14-1
§59A-15-2
§59A-15-4
3.003% (within 90 days)


New York
N.Y. Tax Law §1551
N.Y. Tax Law §1554
3.6% (within 60 days after end of quarter in which business was procured)


North Carolina
§58-28-5(b) 5% (within 30 days)


North Dakota

§26.1-44-10
§26.1-44-03.1

1.75% (annually)



Ohio
§3905.36 5% (annually)


Oklahoma
§1115(B)(1) 6% (annually)


Oregon
 

§ 735.417
§ 735.470

 

 

2%, payable by insured, and an additional 0.3% on “fire” related coverages, payable by insured. (Insured must also file a written report with Oregon Director, within 30 days after insurance was procured, showing name and address of insurer; the subject of the insurance; the amount of the premium charged; and any additional pertinent information reasonably requested by the Director).

 



Pennsylvania
§40-15-122(b) 3% (within 30 days)


Puerto Rico
T.26§702
T.26§1020
4% (1% on annuity remuneration)(only applies to insurers)
15% (for domestic brokers transacting insurance with unauthorized insurers, but not with eligible surplus lines brokers)


Rhode Island

§27-3-38.1

4% (Insured must also file written report with the tax administrator, in a form that he or she may prescribe, within 30 days after the date the insurance was procured, continued or received)



South Carolina


South Dakota
§58-32-47
§58-32-50
2.5% (within 30 days)


Tennessee


Texas
§226.053(a) 4.85% (annually)


Utah
§31A-15-104
§31A-3-301
4.25% (within 60 days)
(excluding ocean marine, insurance premiums paid by institutions within the state system of higher education, and annuities)


Vermont
§5036(d) 3% (annually)


U.S. Virgin Islands
§603(b) 5% (quarterly)


Virginia
§38.2-1802(A)


Washington


West Virginia


Wisconsin
§618.42
§618.43(1)(a)
3% (within 60 days)

Wyoming

§20-11-118
§26-11-124
3% (annually)

Notes:

1. Direct Procurement Taxes are calculated in most states as a percentage of gross premiums.

2. In most of the states, written reports of direct placements are required to be filed with the Insurance Department within 30, 60 or 90 days.