§431:8-315 - Tax on surplus lines.
§431:8-315 Tax on surplus lines. (a) On or before March 15 of each year, each surplus lines broker shall pay to the director of finance, through the commissioner, a premium tax on surplus lines insurance transacted by the broker during the preceding calendar year. The tax shall be in the amount of 4.68 per cent of gross premiums, less return premiums, on taxable surplus lines insurance.
As used in this subsection, "gross premiums" mean the amount of the policy or coverage premium charged by the insurer in consideration for the insurance contract. Any charges for policy, survey, inspection, service, or similar fees or other charges added by the broker shall not be considered part of gross premiums.
(b) If a surplus lines policy covers risks or exposures only partially in this State the tax so payable shall be computed upon the proportion of the premium which is properly allocable to the risks or exposures located in this State.
(c) The tax on any portion of the premium unearned at the termination of insurance shall be returned to the policyholder. [L 1987, c 347, pt of §2; am L 2003, c 212, §48; am L 2006, c 154, §10]