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 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% ‎(effective Jan. 1, 2024)‎ (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 0.06% service fee payable to the FSLSO (Insured must also report the premium to the FSLSO through the Surplus Lines Information Portal (SLIP).)

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

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

Idaho		 §41-1215
§41-1229
§41-1233		 1.5% (within 30 days of policy documents being received by the broker)

Illinois		 215 ILCS 5/121-2.08
0.5% (+ up to 1% fire marshal tax) (file within 90 days of eff. date, pay within 30 days of filing)
0.04% stamping fee (effective Jan. 1, 2023)

Indiana
–
–

Iowa		 §515I.10
§432.1 (4)(a) – (e)		 ‎.975% (for the 2024 calendar year), .95% ‎‎(for the 2025 calendar year), .925% (for ‎the 2026 calendar year), and .9% (for the ‎‎2027 and subsequent calendar years)‎

Kansas
–
–

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

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

Maine		 Title 36 §2531(2) 3% ‎(applied retroactively to Jan. 1, 2023)‎ 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 (subd. 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		 § 7-40-1 et. seq.
§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% state premium tax plus 0.3% fire marshal tax, payable by insured. Each policy is also subject to a $10 flat service charge, payable to the Surplus Line Association of Oregon. (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§702c
T.26§1020

6% (3% on annuity renumeration) (only applies to insurers. For taxable years beginning after December 31, ‎‎2012, there shall be imposed a ‎special 1% tax on the premiums of every insurer, ‎in addition to the 6% tax on premiums, and to any ‎other tax imposed under this Code. For purposes ‎of this special tax, the term “premiums earned” ‎refers to the net reinsurance premiums written ‎according to the Insurer Annual Report filed with ‎the Office of the Insurance Commissioner, ‎pursuant to the rules of the NAIC. (Premiums ‎earned on Medicare Advantage, Medicaid, and ‎premiums earned on the “Mi Salud” Program or on ‎annuities are exempted from the special 1% tax)).

15% of the total premium charged by the unauthorized ‎insurer‎. (to be withheld by the insured and paid within 30 ‎days after the effective date of the policy. This tax does not apply to medical/hospital professional malpractice coverage).

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		 §56-2-411 5% (paid at the same time, in the same manner, and at the same rate as the tax levied on surplus lines insurance)

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(c) 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% (quarterly)

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.