The NIMA Surplus Lines Clearinghouse has announced that Nevada submitted a notice of withdrawal from NIMA on June 29, 2012. On July 2nd, Nevada released Bulletin 12-005 indicating it will collect 100% of the nonadmitted insurance premium tax when Nevada is the home state of the insured. Where Nevada is not the home state of the insured, no premium tax filing in Nevada will be required.
Based on the resolution approved by the NIMA states on June 12th,
Nevada will not be considered a NIMA participating state for the
purposes of filing and allocating taxes for new and renewal policies
effective on or after July 1, 2012 where the home state of the insured
is a NIMA participating state. The remaining five NIMA states (Florida,
Louisiana, South Dakota, Utah, and Wyoming) and Puerto Rico represent 17
percent of nationwide surplus lines premium. Thirty-four states,
representing 73 percent of nationwide premium volume, have no current
plans to participate in tax-sharing agreements
and are collecting 100% of the surplus lines premium tax when they are
the home state.
In its July 1st press release, the Surplus Lines Clearinghouse
announced reporting entities may register to begin filing with the
Clearinghouse by visiting www.slclearinghouse.com.
It noted policies filed through the Clearinghouse during the 3rd
quarter will be invoiced on October 1st. Tutorials are available on the
Clearinghouse website at http://www.slclearinghouse.com/Education/VideoLibrary.aspx.
On July 2nd, the Surplus Lines Clearinghouse released the NIMA States Tax Table to serve as a guide for brokers and policyholders when
determining the applicable taxes, fees, and assessments charged by the
NIMA participating states. It highlights some of the nuances among the
NIMA states, which include:
1. Louisiana and Utah will not collect any tax on premium allocated to a
state that is not participating in NIMA (a non-participating state);
2. Florida is the only NIMA state that will tax premium allocated to
non-participating states at each non-participating state’s tax rate.
When either Puerto Rico, South Dakota or Wyoming are the home state,
they will apply their home state tax rate to any premium allocated to a
3. Utah is the only NIMA state that will apply a stamping fee to Utah allocated premium.
4. Florida and South Dakota apply certain assessments and tax rates to certain premium and specific lines of coverage.
Reporting entities are encouraged to review the NIMA State Tax Table
and the Surplus Lines Clearinghouse Tax Calculator for help in
navigating the tax rates, fees and assessments to be charged by the NIMA
states on nonadmitted, multi-state insurance premium to be filed
through the Clearinghouse.
Please make sure to check out our recent E-News updates regarding recent NIMA developments. They can be found at http://www.napslo.org/imispublic/Content/NavigationMenu/News/ENews/2012/default.htm.
Please don’t hesitate to contact the NAPSLO office at (816) 741-3910
should you have any questions or need any additional information.