Georgia Updates Law to Use its Tax Rate on Multi-state Policies

On May 2, the Georgia Governor signed legislation updating Georgia law to require the use of Georgia’s tax rate on multi-state surplus lines policies where Georgia is the insured’s home state, unless the state elects to join a tax sharing agreement or compact with other states.

In 2011, Georgia passed legislation that applied the other states’ rates on a multi-state policy regardless of whether Georgia joined a compact or agreement. The new law changes the 2011 legislation by eliminating the application of other states’ rates on the portion of an exposure in another state, unless Georgia joins a tax sharing compact or agreement. The new law also applies the Georgia tax rate to independently procured insurance policies, unless the state elects to join a multi-state tax sharing system.

Georgia’s 2011 NRRA legislation included many NRRA terms and authorized the state to enter into a tax sharing agreement or compact with other states. At this time, Georgia has not joined any tax sharing agreement or compact.

Comprehensive information on the Georgia legislation and other states’ NRRA legislative actions is available on the NAPSLO's website, in addition to a number of other useful NRRA implementation resources.