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What are the requirements for premium tax allocation and payment in Michigan?
Only the insured’s Home State may require a surplus lines broker to be licensed to sell, solicit, or negotiate surplus lines insurance with respect to a particular placement.
When Michigan is the insured's Home State 100% of the tax should be paid to Michigan. The combined tax and regulatory fee is 2.5% as stated in MCL 500.1905(3)(d).
Currently, Michigan does not participate in any multistate clearinghouse or tax sharing arrangement.
Effective July 1, 2015, DIFS no longer accepts paper filings for surplus lines tax reports and payments. All surplus lines producers, purchasing groups, and risk retention groups are required to utilize OPTins for tax filings. Registration with OPTins is required prior to utilization of the system; this may take up to two weeks. Registration assistance is available by calling 816-783-8787 or emailing firstname.lastname@example.org. For assistance with the OPTins system when filing a tax report, please contact the OPTins Help Desk at 816-783-8990 or email@example.com. See more information on Surplus Lines Licensee Filing the Surplus Lines Taxes.