Tax Rate
3.00%
Filing Frequency
Semi-annual: March 15 (July-Dec) and September 15 (Jan-June); Quarterly affidavits due 45 days after quarter end
Semi-annual tax returns due March 15 and September 15. Quarterly affidavits due May 15, August 15, November 15, and February 15.
Filing Method
portal
Format: Electronic - Maryland Insurance Administration Online Portal
Requirements
Maryland requires 3% tax on gross premiums including all fees (membership, survey, inspection, service fees). Semi-annual tax returns due March 15 and September 15. Quarterly affidavits due within 45 days of quarter end (May 15, Aug 15, Nov 15, Feb 15). File electronically via Maryland Insurance Administration portal or email to [email protected]. Policy must be stamped in boldface: "This insurance is issued by a nonadmitted insurer not under the jurisdiction of the Maryland Insurance Commissioner." Written disclosure in plain English required. Condominium association coverage prohibited. Has export list (Md. Code Regs. 31.03.06.10). Industrial insured and NRRA commercial purchaser exemptions recognized.
Filing Steps
- 1File quarterly affidavits online at Maryland Insurance Administration portal
- 2Online filing available beginning Q1 2016 - each broker receives unique User ID and password
- 3Email filings should be in PDF format with electronic signature to [email protected]
- 4Name quarterly reports as "broker name, period (1Q, 2Q, 3Q, 4Q) and year"
- 5Name semi-annual tax returns as "broker name and filing due date"
- 6No changes permitted online after submission - revisions must be sent via email
- 7Total premiums on tax report must agree with totals on two quarterly reports for that half year
- 8Payment by check only - include Surplus Lines Tax Payment Voucher
- 9Indicate "Surplus Lines Tax, period ending xx-xx-xxxx" on check stub
- 10Mail payment to Company Licensing at 200 St. Paul Place, Suite 2700, Baltimore, MD 21202
Required Forms
- Form MIA-SLB-06 - Semi-annual Premium Receipts Tax Report
- Quarterly Combined Affidavit by Surplus Lines Broker
- Surplus Lines Quarterly Report (5-part detailed report)
- Surplus Lines Tax Payment Voucher
- Policy stamping endorsement (boldface type)
- Written disclosure statement (plain English)
Common Issues to Avoid
- Forgetting to include all fees in premium for tax calculation (membership, survey, inspection, service fees)
- Missing boldface stamping on policy first page
- Missing written disclosure with policy
- Quarterly affidavit totals not matching semi-annual tax return
- Filing condominium association coverage (prohibited)
- Not returning unearned commissions within 45 days
- Attempting online changes after submission (must email instead)
- Missing payment voucher with check
- Incorrectly naming electronic filings
Helpful Tips
- File $0 activity quarterly reports even though not required - facilitates semi-annual tax return filing
- Keep detailed records to reconcile quarterly reports with semi-annual tax returns
- Use online portal for faster processing (available since Q1 2016)
- Contact Gorina Moody at 410-468-2106 with questions
- Broker fees paid as additional compensation (not for insurance contract) excluded from premium tax per Bulletin 17-18
- Surplus lines broker can recover inspection costs if no financial interest in inspector
- Industrial insured exemption only applies to service of process, not licensing requirements
- Foreign insurers can request waiver of $15M capital requirement down to $4.5M minimum
- Alien insurers on NAIC Quarterly Listing have automatic eligibility
Important Notes
Tax Rate: 3% on gross premiums (broker pays). Premium includes all fees except surplus lines broker fees paid as additional compensation (Bulletin 17-18). Semi-annual filing: March 15 (Jul-Dec), Sept 15 (Jan-Jun). Quarterly affidavits: 45 days after quarter end. Online portal available since Q1 2016. Has export list, no Surplus Lines Association. Policy stamping in boldface required with written disclosure. Condominium coverage prohibited. Broker can recover inspection costs if no financial interest. Return unearned commissions within 45 days of insurer request. Foreign insurers: $15M capital/surplus (waivable to $4.5M). Alien insurers: NAIC Quarterly Listing.
Frequently Asked Questions
What is the surplus lines tax rate in Maryland?
The surplus lines tax rate in Maryland is 3.00%.
When is surplus lines tax due in Maryland?
Semi-annual tax returns due March 15 and September 15. Quarterly affidavits due May 15, August 15, November 15, and February 15.
How do I submit surplus lines filings in Maryland?
portal