It’s disingenuous at best for Lexington to argue that it already pays (Surplus Lines) tax, since Lexington really doesn’t the Surplus Lines tax. It’s like the cable and phone bills where the telecom pays tax and then charges it back to the customer for reimbursement.
Or sales tax or any other tax applied to a good or service. In point of fact, Lexington DOES pay the tax because it places them at a competitive disadvantage against those carriers who don’t have it applied to their premiums. Pretending they DON’T pay it based on a technicality is disingenuous. By the way, Lexington will collect SLA taxes and pay them on behalf of brokers incapable of paying them. I’ve seen them do it.
Same difference. On admitted business the insured pays the premium which includes the premium tax. The carrier remits it to the state.
Now if the surplus lines tax is lower than the premium tax rate, then maybe they need to raise the surplus lines tax rate.
The state gets their money either way.
It’s disingenuous at best for Lexington to argue that it already pays (Surplus Lines) tax, since Lexington really doesn’t the Surplus Lines tax. It’s like the cable and phone bills where the telecom pays tax and then charges it back to the customer for reimbursement.
Or sales tax or any other tax applied to a good or service. In point of fact, Lexington DOES pay the tax because it places them at a competitive disadvantage against those carriers who don’t have it applied to their premiums. Pretending they DON’T pay it based on a technicality is disingenuous. By the way, Lexington will collect SLA taxes and pay them on behalf of brokers incapable of paying them. I’ve seen them do it.
Brokette, did the underwriter complete the surplus lines affidavit as well? I have never seen a carrier file sl taxes!
Lex’s wholly owned MGU (AI Risk) did the filings.