§ 23-65-315 - Tax on brokers.
23-65-315. Tax on brokers.
(a) No later than sixty (60) days following the end of the month in which surplus line insurance was procured, the surplus lines broker shall remit to the Treasurer of State, through the Insurance Commissioner, as a tax imposed for the privilege of transacting business as a surplus lines broker in this state, a tax of four percent (4%) on the direct premiums written, less return premiums and exclusive of sums collected to cover state or federal taxes, on surplus lines insurance subject to tax transacted by the surplus lines broker during the preceding months as shown by his or her affidavit filed with the commissioner.
(b) If a surplus lines policy covers risks or exposures only partially in this state, the tax so payable shall be computed on the proportion of the premium which is properly allocable to the risks or exposures located in this state.