The broker's premium tax is ___%.

In South Carolina, the broker's premium tax rate is set at 6%. This tax is applicable to surplus lines insurance and is a requirement for brokers operating within the state. The premium tax serves as a form of revenue for the state, helping to fund various public services.

Understanding the specific tax rate is crucial for brokers, as it directly impacts the costs associated with securing and managing surplus lines insurance policies. Knowing that the correct rate is 6% allows for accurate budgeting and compliance with state regulations, which is essential for maintaining good standing within the insurance industry. Familiarity with these tax rates is also beneficial for making informed decisions regarding pricing strategies and client communications.