Surplus Lines Filing Fees on Tax Exempt Premiums

BULLETIN: 97-01 April 10, 1997 SURPLUS LINES FILING FEES ON TAX EXEMPT PREMIUMS The purpose of the bulletin is to inform all surplus lines brokers, bonded producers and interested parties regarding the procedure for reporting the surplus lines filing fee per Alaska Statute (AS) 21.34.190. Alaska Statute 21.34.190 states, "The fee for filing the statement under AS 21.34.180(b) is an amount equal to one percent on gross premiums charged less any return premiums during the preceding calendar year." This has been the general application of AS 21.34.190 by the division. The Assistant Attorney General assigned to the division has completed a review regarding AS 21.34.180 as it relates to AS 21.34.190. Based on the conclusions of that review, the division will treat gross premiums that are exempt from premium taxation under AS 21.34.180(d) as also exempt from the filing fee of AS 21.34.190. Alaska Statute 21.34.180(d) states, "This section does not apply to insurance of risks of state government or its political subdivision, or to insurance of aircraft regularly engaged in interstate or foreign commerce." These gross premiums, however, should still be reported on the surplus lines monthly report, but the amount of premium tax and filing fee assessments should be marked as "exempt" or zero, -0-. These gross premiums also should still be reported on the surplus lines Statement of Exempt Premiums. Dated this 14th day of April, 1997. Marianne K. Burke Director of Insurance