Friday, August 29, 2014

Insurance Journal issues review of surplus lines tax sharing

A recent Insurance Journal article discusses the continued differences between the few states that participate in tax sharing as part of the Non-Admitted Insurance Multi-State Agreement (NIMA) versus the majority of states that retain 100% of the surplus lines taxes collected as the home state. NAPSLO’s recent analysis illustrating the insignificant financial impact, especially when compared to the burden and increased costs incurred by brokers and consumers, was highlighted in the article. NAPSLO remains hopeful that additional data from NIMA states will be made available for further analysis, but remains confident additional data will support our initial findings. 

NAPSLO continues to believe that the only viable and uniform national solution for surplus lines premium taxation is the home state approach and that all states should tax 100% of the surplus lines premium on a policy at their home state rate and retain 100% of the taxes they collect.