When are surplus lines taxes due?

Surplus lines taxes are due on or before the last day of the month following premium collection. This timing is established to ensure that insurers and producers keep accurate records and timely remit taxes after they have received the premiums from policyholders. It aligns the tax obligation closely with the actual receipt of financial resources, facilitating better cash flow management for the entities involved.

In practice, this means if a premium is collected in January, the tax payment would be due by the end of February. This structured timeline helps state agencies maintain an organized process for tax collection and encourages compliance among surplus lines insurers, ensuring that obligations are met promptly based on real income transactions.