Is Your Insurance Company Double Taxed in California?
Did you pay 3% surplus lines tax and 0.25% filing fee for your policy with a company that is Non-Admitted in California? Well, certainly, you did! Would you like to pay 2.35% section 28 tax? According to a California Court of Appeal decision, surplus line insurers should not be subject to California Constitution Section 28 taxes to the state, since these nonadmitted insurers already pay surplus line premium taxes. The conflict arose when Stephen Silvers and Steven Gold (S&G) filed a complaint, alleging that surplus line insurer Lexington Insurance Co. had failed to pay Section 28 taxes, and sought the court’s… Read More »Is Your Insurance Company Double Taxed in California?