Bill > A3527

This bill decreases the premium receipts tax on surplus lines insurance coverage, which is insurance not readily available from authorized insurers, from 5% to 3% of the gross premiums. This reduction brings the tax rate back to what it was before a 2009 law (P.L.2009, c.75) increased it. For surplus lines policies covering fire insurance on property located in municipalities or fire districts with an incorporated firemen's relief association, the entire 3% tax will now be paid directly to the treasurer of the New Jersey State Firemen's Association, continuing a previous practice and accounting for the elimination of an additional 2% tax that was previously sent to the Commissioner of Banking and Insurance. The bill also clarifies that if a surplus lines policy covers risks in multiple states and New Jersey is considered the "home state" (meaning it's the primary state for regulation), the tax will be based on the total United States premium for that policy. This change will take effect on January 1, 2013.

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https://www.njleg.state.nj.us/bill-search/2026/A3527