S.B. 19 - Surplus Lines Premium Tax

• Eliminates allocation of surplus lines insurance premiums by state and applies Hawaii's 4.68% premium tax rate to the entire gross premium regardless of where risks are located

• Removes requirements for surplus lines brokers to itemize premiums, return premiums, taxes, and fees by state in policy confirmations and annual statements

• Repeals provisions allowing the commissioner to enter into reciprocal agreements with other states for allocation and disbursement of premium taxes among states

• Repeals the process for allocating taxes to other states where risks are partially located and collecting reciprocal payments from other states for Hawaii-based risks

• Effective date: October 1, 2019