1) Remit all state premium tax due on a surplus lines transaction to the home state of the insured for distribution to all states where taxes are due;
So, if we have a PA home state, and covered locations in PA, NJ, MD, DE, TN and VA.
The PA SL licensee would collect the taxes on the entire premium, send all the taxes to the PA Dept. of Revenue and have them dole out the taxes to each state according to the exposure and premium?
1) Remit all state premium tax due on a surplus lines transaction to the home state of the insured for distribution to all states where taxes are due;
So, if we have a PA home state, and covered locations in PA, NJ, MD, DE, TN and VA.
The PA SL licensee would collect the taxes on the entire premium, send all the taxes to the PA Dept. of Revenue and have them dole out the taxes to each state according to the exposure and premium?
Wow that sounds really unweildy.
Actually, many states already function in that manner.