The Fire Safety Surcharge applies to fire coverages on risks in Minnesota. The surcharge must be separately stated on either a billing or policy declaration, or on another document with similar information sent to the insured.
Who Must File
All property and casualty insurance companies that are licensed to write fire, homeowners or commercial multi-peril non-liability insurance must report the Fire Safety Surcharge. If you carry a license with Clause 1 from the Minnesota Department of Commerce, you must file a return even if you write no business in the tax period.
Due Dates
Quarterly surcharge returns and payments are due as follows:
- May 15 (for the Jan. 1-March 31 period)
- Aug. 15 (for the April 1-June 30 period)
- Nov. 15 (for the July 1-Sept. 30 period)
- Feb. 15 (for the Oct. 1-Dec. 31 period)
Filing and Payment
This surcharge can only be filed by paper. If you are required to report the surcharge:
- a stock insurance company; or
- a mutual insurance company that had assets greater than $1.6 billion on Dec. 31, 1989.
- a mutual insurance company with less than $5 million in assets for the current year or
- a mutual insurance company with less than $1.6 billion in assets on Dec. 31, 1989.
- If you qualify to file either form, you must file the same way for an entire calendar year.
You may pay electronically through our e-Services system or by check. If paying by check, you must include Voucher PV55, Fire Safety Surcharge Return Payment. If you pay electronically or have no payment due, do not send the voucher.
Tax Rates
When filed on Form IG261, the surcharge is 0.65 percent (0.5 percent beginning July 1, 2013) of fire, homeowners and commercial multi-peril non-liability insurance premiums. When filed on Form IG262, the surcharge is 0.5 percent of premiums attributable to fire and sprinkler-leakage premiums. Proportional finance and service charges should be included as part of the premiums when filed on either form.
