Tax Rate
4.80%
Filing Frequency
Quarterly
Quarterly tax returns and affidavits due within 30 days after quarter end. Affidavits also due within 30 days of policy issuance.
Filing Method
portal
Format: portal
Requirements
KENTUCKY SURPLUS LINES FILING REQUIREMENTS:
1. BROKER LICENSING:
- Must hold valid Kentucky surplus lines broker license
- Individual account required (NOT business entity)
2. ACCOUNT SETUP:
- Register through Kentucky Online Gateway (KOG)
- Separate from business entity credentials
- Account setup takes less than 5 minutes
3. DILIGENT SEARCH:
- Must certify diligent search per KRS 304.10-040
- Certification included in affidavit submission
- Required for each surplus lines placement
4. ELIGIBLE INSURERS:
- Must use insurers on Kentucky eligible list
- Foreign insurers: Min $15M capital/surplus
- Alien insurers: Must be on NAIC Quarterly Listing
- List maintained at insurance.ky.gov
5. POLICY STAMPING:
- Required disclaimer must be conspicuously stamped
- Must be on face page of policy
- Must be initialed or bear broker name
Filing Methods
- portal
Filing Steps
- 1CRITICAL: Separate LGPT filing to EACH municipality - cannot combine
- 2State tax: 3% + 1.8% surcharge = 4.8% total
- 3LGPT rates vary by jurisdiction (3%-16%) and coverage type
- 4Policy stamp language: "This policy is issued pursuant to the Kentucky surplus lines law by [broker name], a licensed Kentucky surplus lines broker. The insurer is not licensed in Kentucky and is not subject to its supervision. In the event of the insolvency of the insurer, losses will not be paid by the Kentucky Insurance Guaranty Association."
- 5Collection fee for brokers: lesser of 15% of LGPT or 2% of premium
- 6Indivisible premiums: weight 2/3 fire, 1/3 casualty
- 7Form LGT 142 for city/county tax coordination credits
- 8Tax code 54 (Calloway County): special 501(c)(3) exemption
- 9Industrial insured and exempt commercial purchaser exemptions available
Required Forms
- Form 916 (Kentucky Surplus Lines Insurer Information Sheet)
- Quarterly Premium Tax Return (KOG portal)
- Form LGT 141 (City, County, or Urban County Government Quarterly Insurance Premium Tax Return)
- Service of Process Appointment
- Policy Stamp/Endorsement
Common Issues to Avoid
- Forgetting to file separate LGPT returns for each municipality
- Using wrong LGPT rate - must check tax schedule by jurisdiction
- Missing policy stamp or using incorrect language
- Not filing Form 916 before first transaction
- Calculating LGPT on wrong coverage type (e.g., health vs fire)
- Forgetting 1.8% state surcharge (using 3% instead of 4.8%)
- Not weighting indivisible premiums correctly (2/3 fire, 1/3 casualty)
- Sending LGPT payment to wrong payee address
Helpful Tips
- Download 2025-2026 LGPT tax schedule from DOI website before filing
- Create spreadsheet mapping policy locations to tax jurisdictions
- Set up KOG portal access well before first deadline
- Keep updated list of municipality payee addresses
- Use Form LGT 142 to track city/county coordination credits
- Maintain detailed records of tax code exemptions claimed
- Calculate collection fee separately for each jurisdiction
Important Notes
IMPORTANT KENTUCKY-SPECIFIC NOTES:
• Tax Rate: 3% base + 1.8% surcharge = 4.8% total
• Local Government Premium Tax (LGPT) additional in some municipalities
• Louisville Metro has separate Form LGT-141 requirement
• Health insurance only taxed in Urban Service District (formerly City of Louisville)
• Collection fee allowed: 15% of tax OR 2% of premium (whichever less)
• Late payment interest at KRS 131.010(6) rate
• Credit card payments subject to service fee
• No fee for eCheck payments
• "No Business" filing required if no premiums collected
• Can edit affidavits only within current quarter before tax billing
• After quarterly billing, changes require cancellation/endorsement
• Batch upload requires specific text file format
• KOG credentials separate from prior Sept 2019 accounts
Frequently Asked Questions
What is the surplus lines tax rate in Kentucky?
The surplus lines tax rate in Kentucky is 4.80%.
When is surplus lines tax due in Kentucky?
Quarterly tax returns and affidavits due within 30 days after quarter end. Affidavits also due within 30 days of policy issuance.
How do I submit surplus lines filings in Kentucky?
portal