Up to how much premium tax can brokers face annually?

In South Carolina, surplus lines brokers are subject to a premium tax that is established at a rate of 6% on the gross premiums collected for surplus lines insurance. This tax applies to the total premium amount, and brokers must ensure that they comply with this requirement as part of their regulatory obligations.

The 6% tax is a key element of the financial framework within which surplus lines operate in the state, ensuring that the state can collect necessary revenue from these transactions. Understanding this percentage is crucial for brokers to accurately assess their financial commitments and to comply with state regulations effectively. It is important for brokers to stay updated on any changes to these tax rates or regulations as they can impact their business operations significantly.