Effective July 1, 2012, all non-admitted business written in Georgia with an effective date on or after July 1, 2012, where Georgia is the HOME state, will be taxed per Senate Bill 385. If a surplus line policy covers risks or exposures located both in and out of Georgia and Georgia is the “home state,” the entire premium will be taxed at a rate of 4% and filers do not need to allocate that portion of the risk located in each state. Allocations will be required if Georgia participates in a cooperative agreement, compact, or reciprocal agreement with other states. However, if Georgia enters into any such agreement, additional instructions will be provided at that time.
SB 385 affects the tax rate and eliminates state allocation requirements, but does not revise or change any other information previously provided in Bulletin 11-EX-3 (which may be obtained from www.oci.ga.gov). A copy of SB 385 may be obtained from the Georgia General Assembly website at www.legis.ga.gov.
Any questions concerning this Bulletin should be addressed to the Premium Tax Division, 916 West Tower, #2 Martin Luther King, Jr. Drive, Atlanta, Georgia 30334, (404) 656-7553, or premiumtax@oci.ga.gov.
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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