NRRA encourages states to join a compact or some other agreement which would provide uniform, nationwide collection and distribution of premium taxes to states based on allocation according to location of risk and tax computation based on the recipient state’s tax rate.
The Oklahoma Insurance Commissioner has not joined any of the currently existing multi-state groups or compacts pertaining to Surplus Line Insurance Reform.
When Oklahoma is the home state of the insured and the insurance covers properties, risks or exposures located or to be performed both in and out of Oklahoma, the amount payable will be based on an amount equal to six percent (6%) of the total gross premiums whether the properties, risks or exposures are located or to be performed inside or outside Oklahoma.
When Oklahoma is the Home State of the insured, one hundred percent of the gross premiums are taxable in Oklahoma with no allocation of the tax to other states.
The surplus line broker or company should file the Broker Quarterly Summary Report form found on the Oklahoma Insurance Department’s web site at the times and in the same manner that surplus lines premium taxes were previously reported.
Call the Premium Tax Office of the Financial Division of the Oklahoma Insurance Department at 521-3966 for further information.
The insurance licensing information provided on this blog is not legal advice and the reader is advised to consult an attorney regarding application of this information in any particular situation.
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