Surplus Lines / Industrial Insured Premium Tax

Taxes | SLB/II


News

IMPORTANT! Beginning January 1, 2020, all surplus lines broker tax reports and payments must be filed electronically.  You must:

  • Use the Surplus Line of Arizona system to produce the tax report and
  • Use the OPTins system (www.optins.org) administered by the National Association of Insurance Commissioners (NAIC) to file the report and pay the tax.

To use the NAIC OPTins system, you must complete a registration process.  Do not wait until your tax filing and payment are due.  Complete the registration process immediately.

 

Home State

Only file taxes to Arizona for transactions for which Arizona is the "home state," as defined in ARS § 20-401(6).
 

Transaction Filing and Reporting Due Dates:

Due date* Surplus lines / industrial insured (unauthorized insurance) transactions for which reports and taxes are due
February 15

Insurance (for both Arizona-only and multi-state risks) procured during the preceding July 1 through December 31. 

August 15 Insurance (for both Arizona-only and multi-state risks) procured during the preceding January 1 through June 30.
*Tax obligations due on a legal holiday are timely fulfilled if filed the next business day.  ARS § 1-218


Filing Requirements

 Industrial insureds (also known as exempt commercial purchasers) must use Form E-II to calculate and report premiums and taxes owed. Regulatory Bulletin 2014-10 summarizes Arizona's criteria for being defined as an industrial insured.

Surplus lines brokers must

  • File transactions with The Surplus Line Association of Arizona (or "SLA-AZ," at www.sla-az.org);
  • Produce a transaction detail report and a tax report using the SLA-AZ system;
  • Submit the transaction detail report and tax report using the NAIC OPTins system (www.optins.org).

HOW DID WE DO?

Please Provide Your Feedback

  • To report errors with forms or instructions, or to suggest ways to improve them, please send e-mail to Premium Tax Administrator Susan Yepez ([email protected]).