Industrial Insured / Independent Procurement (IP) Taxes and Fees
The system calculates all taxes and fees automaticaly when you file a policy or endorsement. All taxes and fees are rounded to the nearest whole dollar. For Industrial Insured /Independent Procurement (IP) transactions, the following taxes and fees apply.
IP Tax
0.0% for policies effective prior to 01/01/2015.
3.5% for policies effective from 01/01/2015 through 12/31/2017.
0.5% for policies effective 01/01/2018 and later.
Fire Marshal Tax
0.0% for policies effective prior to 01/01/2015.
1.0% of the fire premium for policies effective 01/01/2015 and later, as described below. (The coverages below are only those for which fire marshal tax applies. For a full list of coverages and codes, click here.)
Fire premiums that include allied lines are assessed the full 100%. If
the premiums are separate and distinct (fire and allied) the allied lines portion may be assessed
at 25%.
For policies covering multiple perils, if the premium charged for each
peril is shown separately on the declarations page or elsewhere in the policy, compute the
fire marshal tax on the premium for each peril separately using the chart above (with each computation
rounded to the nearest dollar).
If the premiums are not broken out, compute the tax by charging the 1% tax rate
against 40% of the entire policy premium.
0.000% for policies effective prior to 01/01/2015.
0.200% for policies effective from 01/01/2015 through 12/31/2017.
0.125% for policies effective from 01/01/2018 through 12/31/2018.
0.075% for policies effective from 01/01/2019 through 12/31/2022.
0.040% for policies effective 01/01/2023 and later.
Remember, you don't have to worry about making these calculations. The system will calculate all taxes and fees for you automatically. If you have any questions about taxes and fees, feel free to
contact us.
