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Appendix B
 

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)

2% (annually)




 

District of Columbia

-

-




 

Florida


§626.938(3)

5% plus 0.2% service fee payable to the FSLSO decreasing to 0.175% effective 4/1/2014 (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

-
-



 

Indiana

-
-



 

Iowa


§507A.9
§432.1 (4)(a) - (e) 

2% - Prior to 2004
1.75% - 2004
1.50% - 2005
1.25% - 2006
1% - 2007 and subsequent calendar years.



 

Kansas

-
-



 

Kentucky


§304.11-030
§304.11-050(1)

2% (annually)



 

Louisiana


§22:439

5% (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 renumeration)(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.