Bulletin 2007-12 Remitting Nonresident Broker Premium Taxes Directly to the Department

# South Carolina Department of Insurance MARK SANFORD Governor SCOTT H. RICHARDSON Director of Insurance # BULLETIN NUMBER 2007-12 TO: All Insurers, Producers and Brokers Transacting Business in the State of South Carolina FROM: Scott H. Richardson, CPCU Director RE: Remitting Nonresident Broker Premium Taxes Directly to the Department DATE: August 13, 2007 The purpose of this bulletin is to address questions regarding the proper method of remitting premium taxes for nonresident brokers. Section 38-45-30(6) requires nonresident brokers as a condition of licensure to: (6) pay the department, within thirty days after March thirty-first, June thirtieth, September thirtieth, and December thirty-first each year, a broker's premium tax of four percent upon premiums for policies of insurers not licensed in this State. Credit may be taken for tax on policies canceled flat within forty-five days of the effective policy date as long as the business was placed in good faith and the policy was canceled at the request of the insured. The broker premium tax must be remitted to the Department in accordance with the requirements of Bulletin 2000-06 and the applicable forms and instructions. A nonresident broker is not required to remit the premium taxes through a resident broker. This bulletin supersedes and replaces any prior positions or rulings by this Department that required nonresident brokers to remit premium taxes through a resident broker. South Carolina law does not preclude nonresident brokers from remitting taxes through a resident broker if they elect to do so. The "Yearly Broker Premium and Tax Return" and Broker's Quarterly Premium Tax Payment" forms are incorporated into this bulletin by reference. The applicable forms are attached to this bulletin for your information and convenience. Questions regarding this bulletin or the proper method for remitting premium taxes should be addressed to the attention of Mary Sturkie at msturkie@doi.sc.gov or by calling (803) 737-6082.