Surplus Lines Insurance Tax
Note: Revenue Notice #20-21: Insurance Taxes – Nonadmitted Insurance Premium Tax – Broker Fees states that a broker complies with Minnesota law if the broker uses one of three methods to determine what amount of a broker fee is included in gross premiums pursuant to Minnesota Statutes section 297I.01, subdivision 9(d). The third stated method is applying an “industry average commission rate.” The industry average commission rate for the 2020 tax year is 14.63%. This rate applies to the return periods ending June 30, 2020, and December 31, 2020.”
All surplus lines brokers must report the Non-Admitted Surplus Lines Insurance Premium Tax. If you have an active license from the Minnesota Department of Commerce for any portion of a filing period, you must file a return.
If you are required to file and pay Surplus Lines Insurance Tax, file Form IG260, Nonadmitted Insurance Premium Tax Return for Surplus Lines Brokers, by Aug. 15 and Feb. 15.
In addition, brokers must separately file and pay with the Surplus Lines Association of Minnesota (SLAM) by Aug. 15 and Feb. 15. See filing information on the SLAM website.
This tax must be filed by paper, but can be paid electronically through our e-Services system.