CA| The Surplus Line Association of California has issued Bulletin #1494 regarding Annual Tax Return Requirements for surplus line brokers. The 2024 annual tax return is due on or before March 3, 2025, and must be submitted to the California Department of Insurance (CDI) Premium Tax Audit Unit.
Key points:
- All surplus line brokers must file their 2024 tax returns using the new Premium Tax Processing System (PTPS) portal for electronic filings.
- The tax rate is 3% of gross policy premiums plus fees minus any returned premiums, and annual tax returns must be filed regardless of whether any business was transacted.
- Starting with the 2024 tax period, all amounts reported and paid to CDI must be in whole dollars, applying only to CDI tax forms and payments.
- Surplus line brokers with an annual tax liability of $20,000 or more must make monthly prepayments via Electronic Funds Transfer (EFT), while those below this threshold may pay by check.