§439. Tax on surplus lines and unauthorized insurance

            A.(1) There shall be a tax of four and eighty-five one hundredths of one percent per annum on the gross premium without regard to the location of the covered property, risk, or exposure for all insurance placed through a Louisiana licensed surplus lines broker with a surplus lines insurer or other unauthorized insurer and for which Louisiana is the home state of the policyholder as defined in R.S. 22:46. The commissioner shall collect the tax and deposit it with the state treasurer who shall credit it as follows:

            (a) An amount equal to ninety-six percent of tax collected shall be credited to the state general fund.

            (b) An amount equal to four percent of the tax collected shall be credited to the Louisiana Fire Marshal Fund as provided in R.S. 22:835.

            (2) On or before March first, June first, September first, and December first of each year, each surplus lines broker shall transmit to the commissioner a surplus lines tax report and remit the tax payable pursuant to this Subsection. The commissioner shall prescribe the manner and form of the surplus lines tax report, which shall include all of the following:

            (a) All new and renewal policies for the calendar quarter in which the effective date of the policy falls.

            (b) All other premium transactions for the calendar quarter in which the invoice falls.

            (c) Any additional information required by the commissioner.

            (3) The commissioner shall not require a quarterly report for any quarter in which a surplus lines broker has no surplus lines or other unauthorized insurance premium to report. The commissioner shall require the filing of the report due on or before March first in order to certify the reporting of all surplus lines and other unauthorized insurance business conducted during the calendar year or the absence of any business during the calendar year.

            B.(1) There shall be a tax of four and eighty-five one-hundredths of one percent per annum on one hundred percent of the gross premium without regard to the location of the covered property, risk, or exposure for all insurance placed directly by the policyholder with a surplus lines insurer or other unauthorized insurer and for which Louisiana is the home state of the policyholder as defined in R.S. 22:46.

            (2) Each policyholder directly placing insurance shall transmit a direct placement tax report to the commissioner and remit the tax payable pursuant to this Subsection within thirty days of the transaction. The commissioner shall prescribe the manner and form of the direct placement tax report.

            (3) The commissioner shall collect the tax imposed by this Subsection and deposit it with the state treasurer who shall credit it to the state general fund.

            C. The tax imposed on surplus lines pursuant to this Section shall not apply to the purchase of excess insurance obtained by an interlocal risk management agency pursuant to R.S. 13:5575 or R.S. 33:1359.

            D. The tax imposed pursuant to this Section shall not apply to the purchase of insurance by or on behalf of any of the following:

            (1) A college, university, school, institution, or program that is under the supervision or management of a system board of supervisors provided for in R.S. 17:3215 through 3217.1.

            (2) A political subdivision having a population of not less than three hundred fifty thousand persons according to the latest federal decennial census.

            (3) An agency of this state as defined in R.S. 39:2.

            Acts 1958, No. 125. Amended by Acts 1958, No. 265, §1; Acts 1960, No. 149, §1; Acts 1984, 1st Ex. Sess., No. 3, §1, eff. March 27, 1984; Acts 1999, No. 868, §1; Acts 2005, No. 294, §1; Redesignated from R.S. 22:1265 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2009, No. 503, §1; Acts 2011, No. 361, §1, eff. July 1, 2011; Acts 2013, No. 203, §1, eff. June 10, 2013; Acts 2015, No. 386, §1, eff. Oct. 1, 2015, and §4(B), eff. July 1, 2015; Acts 2016, No. 374, §1, eff. July 1, 2016; Acts 2021, No. 32, §1, eff. July 1, 2021; Acts 2021, No. 342, §1, eff. July 1, 2021.

NOTE: Former R.S. 22:439 redesignated as R.S. 22:168 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.

NOTE: See Acts 1984, 1st Ex. Sess., No. 3, §2.