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) |
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| Alaska | §21.33.061(c) | 3% (annually) 0.75% (wet marine, transportation) |
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| Arizona | §20-401.07 | 3% (annually)(Industrial Insurance only) |
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| Arkansas | §23-65-103(c) | 2% (within 30 days after insurance procured, continued or renewed) |
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| California | California Cal. Rev. & Tax Code §1760(b) 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) |
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| Colorado | §10-3-903(2)(d) §10-3-209 §10-3-909 |
2% (annually) |
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| Connecticut | §38a-271 §38a-277 (c) |
4% (annually) (excluding wet marine and transportation) |
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| Delaware |
- |
- |
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| District of Columbia |
- |
- |
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| Florida | §626.938(3) | 5% plus 0.3% service fee payable to the FSLSO (within 30 days)(Insured must also report the premium to the FSLSO using forms designated by the FSLSO or in a computer readable format) |
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| Georgia | §33-5-33(b) | 4% (within 30 days) |
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| Hawaii | §431:8-205(c) | 4.68% (within 60 days) |
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| Idaho | §41-1233 §41-1229 |
2.75% - for policies issued in 2004, 2005 and 2006. 1.5% for policies issued in 2007 and thereafter (within 30 days after insurance procured, continued or renewed) |
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| Illinois |
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| Indiana |
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| 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. |
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| Kansas |
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| Kentucky | §304.11-030 §304.11-050(1) |
2% (annually) |
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| Louisiana | §22:439 | 5% (quarterly) |
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| Maine | Title 24-A, §2113(3) | 3% (within 30 days) |
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| Maryland | §4-210 §4-211(b)(1) |
3% (annually) |
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| Massachusetts |
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| Michigan | §500.1951 | 2% 0.5% (regulatory fee) (within 30 days) |
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| Minnesota | §60A.19(8) §297I.05 |
2% (annually) (except life insurance) |
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| Mississippi | §83-5-61 | 3% (+$1.00 on each policy procured) |
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| Missouri | §384.051(4) | 5% (annually) |
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| Montana | §33-2-705 | 2.75% (annually) |
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| Nebraska |
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| Nevada | §680B.040 §680B.027(1) |
3.5% (within 30 days) |
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| New Hampshire | §406-B:17(III) | 4% (annually) 2% (marine) |
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| New Jersey | §17:22-6.64 | 5% (within 30 days) |
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| New Mexico | §59A-6-2 §59A-14-1 §59A-15-2 §59A-15-4 |
3.003% (within 90 days) |
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| 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) |
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| North Carolina | §58-28-5(b) | 5% (within 30 days) |
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| North Dakota |
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| Ohio | §3905.36 | 5% (annually) |
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| Oklahoma | §1115(D)(1) | 6% (annually) |
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| Oregon |
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| Pennsylvania | §40-15-121 | 3% (within 30 days) |
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| Puerto Rico | T.26§702 T.26§1020 |
4% (+ 1% on annuity renumeration) 15% (for domestic brokers transacting insurance with unauthorized insurers, but not with eligible surplus lines brokers) |
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| Rhode Island |
§27-3-38.1 |
3% (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) |
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| South Carolina |
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| South Dakota | §58-32-47 §58-32-50 |
2.5% (within 30 days) |
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| Tennessee |
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| Texas | §226.053(a) | 4.85% (annually) |
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| Utah | §31A-15-104 §31A-3-301 |
4.25% (within 60 days) (excluding ocean marine) |
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| Vermont | §5036(d) | 3% (annually) |
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| U.S. Virgin Islands | §603(b) | 5% (quarterly) |
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| Virginia | §38.2-1802(A) |
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| Washington |
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| West Virginia |
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| Wisconsin | §618.42 §618.43(1)(a) |
3% (within 60 days) |
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| Wyoming |
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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.