2013 Vermont Statutes
Title 08 Banking and Insurance
Chapter 138 NON-ADMITTED INSURERS AND SURPLUS LINES INSURANCE
§ 5035 Surplus lines tax

5035. Surplus lines tax

(a) Where Vermont is the home state of the insured, gross premiums charged, less any return premiums, for surplus lines coverages placed with non-admitted insurers are subject to a premium receipts tax of three percent, which shall be collected from the insured by the surplus lines broker at the time of delivery of policy or other confirmation of insurance, in addition to the full amount of the gross premium charged by the insurer for the insurance. The tax on any portion of the premium unearned at termination of insurance shall be returned to the policyholder by the surplus lines broker. Nothing contained in this section will preclude a surplus lines broker from charging a fee to the purchaser of the contract sufficient to recover the amount of this tax. Where the insurance covers properties, risks, or exposures located or to be performed both in and out of this State, the sum payable shall be computed based on gross premiums charged, less any return premiums, as follows:

(1) An amount equal to three percent on that portion of the premiums applicable to properties, risks, or exposures located or to be performed in Vermont; plus

(2) An amount equal to a percentage on that portion of the premiums applicable to properties, risks, or exposures located or to be performed outside Vermont. Such percentage shall be determined based on the laws of the jurisdiction within which the property, risk, or exposure is located or to be performed.

(b) At the time of filing his or her quarterly report with the Commissioner, each surplus lines broker shall file a duplicate report and remit the premium tax due thereon to the Commissioner of Taxes.

(c) If the tax collectible by a surplus lines broker under this section is not paid within the time prescribed, it shall be recoverable in a suit brought by the Commissioner against the surplus lines broker and the surety on the bond filed under section 4800 of this title. (Added 1979, No. 50, 2; amended 1981, No. 42, 4; 2001, No. 97 (Adj. Sess.), 19; 2011, No. 49, 9, eff. May 26, 2011.)