Georgia Insurance and Safety Fire Commissioner Ralph Hudgens Issues Bulletin on Multi-State Tax Rate Changes
May 22, 2012
Georgia Insurance and Safety Fire Commissioner Ralph Hudgens issued an informational bulletin yesterday, May 21, 2012, advising that all non-admitted surplus lines policies written in Georgia with an effective date on or after July 1, 2012, and for which Georgia is the “home state,” will be taxed pursuant to Senate Bill 385.
The bulletin is reprinted below, as well as attached in PDF format.
Should you have any questions or comments, please contact Colodny Fass.
TO: ALL SURPLUS LINE BROKERS AND INSUREDS INDEPENDENTLY PROCURING NONADMITTED INSURANCE
FROM: RALPH T. HUDGENS INSURANCE AND SAFETY FIRE COMMISSIONER
DATE: MAY 21, 2012
RE: MULTI-STATE TAX RATE CHANGES – SENATE BILL 385
Effective July 1, 2012, all non-admitted business written in Georgia with an effective date on or after July 1, 2012 – where Georgia is the HOME state – will be taxed pursuant to Senate Bill 385. If a surplus line policy covers risks or exposures located or to be performed both in and out of Georgia and Georgia is the “home state,” the entire premium will be taxed at a rate of 4% and filers do not need to allocate that portion of the risk located in each state. Allocations will be required if Georgia participates in a cooperative agreement, compact, or reciprocal agreement with other states. However, if Georgia enters into any such agreement, additional instructions will be provided at that time.
SB 385 affects the tax rate and eliminates state allocation requirements, but does not revise or change any other information previously provided in Bulletin 11-EX-3 (which may be obtained from our website at www.oci.ga.gov). A copy of SB 385 may be obtained from the Georgia General Assembly website at www.legis.ga.gov.
To access the Excel workbook/form that should be utilized for filing surplus line affidavits go to www.oci.ga.gov, select “Premium Tax” from the home page, next select “Forms and Filing Procedures,” and then select the appropriate type of filing. Payment of tax is due at the time of filing.
Any questions concerning this Bulletin should be addressed to the Premium Tax Division, 916 West Tower, #2 Martin Luther King, Jr. Drive, Atlanta, Georgia 30334, (404) 656-7553, or firstname.lastname@example.org.
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