We have just been advised that a very recently passed NJ law has resulted in an increase in the Surplus Lines Tax from 3% to 5% effective July 1st, 2009. This includes any surplus lines account effective 7/1/2009 or later regardless of when the account was quoted or bound.
In addition, this increase will apply to both new and renewal business. The tax will also apply to Additional Premium Endorsements that are effective 7/1/2009 or later despite the effective date of the policy.
Any already bound New or Renewal business, effective on or after July 1, 2009, will require the additional 2% Surplus Lines tax to be collected. Any business quoted, New or Renewal, but not yet bound on or after July 1, 2009 should include the 5% Surplus Lines Tax and collected as such.
