President Barack Obama signed the NRRA into law on July 21, 2010, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The bill includes language to standardize the reporting, allocation, and payment of non-admitted insurance premium tax on multi-state risks. The NRRA grants the insured's home state exclusive authority to regulate and tax surplus lines insurance that includes multi-jurisdictional boundaries. Additionally, the bill provides states the ability to enter into an agreement to collect and share premium taxes for these multi-state risks.
States that fail to adopt some means of tax allocation system will be subject to a single-state taxation that allows the home state to retain 100 percent of the tax on the gross premium effective July 21. (Without an agreement, Florida stood to lose an estimated $15 to $20 million per year in premium tax.)
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