                                 CODE OF VIRGINIA

LICENSEES TO PAY LICENSE TAXES ON INSURERS (§ 38.2-4809)

A. 1.  Every licensed surplus lines broker or any person required to be licensed
as a surplus lines broker shall be subject to the annual taxes, license taxes,
penalties, and other provisions of Article 1 (§ 58.1-2500 et seq.) of Chapter
25 of Title 58.1 on each policy of insurance procured by him during the
preceding calendar year with an eligible nonadmitted insurer. For policies
effective on or after July 1, 2011, such payments shall be made based on the
direct gross premium income derived from policies for insureds whose home state
is the Commonwealth.

   2. Every surplus lines broker or any person required to be licensed as a
   surplus lines broker subject to the provisions of this chapter shall, on or
   before March 1 of 2012 and 2013 report under oath to the Commission, and on or
   before March 1 of each year thereafter, report under oath to the Department of
   Taxation, upon the prescribed form, the direct gross premium income derived
   from policies for insureds whose home state is the Commonwealth during the
   preceding year ending December 31.

   3. Every surplus lines broker or any person required to be licensed as a
   surplus lines broker failing to file the report required by this section shall
   be fined $50 for each day&#8217;s failure to file the report.

   4. Upon the failure of any such surplus lines broker or any person required to
   be licensed as a surplus lines broker to pay the premium license tax within
   the time required by this section, there shall be added to such tax a penalty
   of 10 percent of the amount of the tax and interest at a rate equal to the
   rate of interest established pursuant to &#xA7; 58.1-15 for the period between
   the due date and the date of full payment. The Commission or Department of
   Taxation shall notify the surplus lines broker of all additional amounts owed,
   and the surplus lines broker shall pay such amounts within 30 days of the date
   of the notice.

   5. Upon good cause shown, the Department of Taxation may accept late payment
   of the premium license tax exclusive of penalties; however, interest shall be
   paid on such tax as prescribed in this subsection.

   6. If any person overestimates and overpays the annual taxes, the Department
   of Taxation shall refund the amount of the overpayment to the person. The
   overpayment shall be refunded out of the state treasury.

B. 1.  Each licensed surplus lines broker or any person required to be licensed
as a surplus lines broker whose annual premium license tax liability can
reasonably be expected to exceed $1,500 shall file a quarterly tax report with
the Department of Taxation. Such report shall be in a form prescribed by the
Department of Taxation. This report shall be filed no later than 30 calendar
days after the end of each calendar quarter. Notwithstanding any provision to
the contrary, each such person shall pay the premium license tax owed for the
direct gross premiums adjusted for additional and returned premiums shown by
each quarterly tax report when such report is filed with the Department of
Taxation.

   2. No surplus lines broker or any person required to be licensed as a surplus
   lines broker shall be subject to any penalty or interest pursuant to Title
   58.1 as a result of the failure to timely file a quarterly tax report or make
   the related quarterly payment when the report is filed pursuant to subdivision
   1.

C. In addition to other penalties provided by law, any licensed surplus lines
broker or any person required to be licensed as a surplus lines broker who
willfully fails or refuses to pay the full amount of the tax or assessment
required by this chapter, either by himself or through his agents or employees,
or who makes a false or fraudulent return with intent to evade the tax or
assessment hereby levied, or who makes a false or fraudulent claim for refund
shall be guilty of a Class 1 misdemeanor.

D. If any licensed surplus lines broker or any person required to be licensed as
a surplus lines broker charges and collects from the insured the taxes and
assessments required by this section and &#xA7; 38.2-4809.1, such person shall
be a fiduciary to this Commonwealth for any taxes and assessments owed to this
Commonwealth under this chapter.

E. Notwithstanding the provisions of this section and effective for calendar
year 2025 and each calendar year thereafter, any surplus lines broker or any
person required to be licensed as a surplus lines broker shall not be subject to
the annual taxes, license taxes, penalties, and other provisions of Article 1
(&#xA7; 58.1-2500 et seq.) of Chapter 25 of Title 58.1 on any policy of
insurance procured by such broker during the preceding calendar year on behalf
of a commuter rail system jointly operated by the Northern Virginia
Transportation Commission established pursuant to &#xA7; 33.2-1904 and the
Potomac and Rappahannock Transportation District established pursuant to the
Transportation District Act (&#xA7; 33.2-1900 et seq.).

HISTORY: Code 1950, § 38.1-314.9; 1960, c. 503; 1979, c. 513, § 38.1-327.54;
1986, c. 562; 1987, c. 519; 1988, c. 153; 2001, c. 706; 2011, cc. 498, 850;
2013, cc. 29, 163; 2018, c. 205; 2025, cc. 124, 136.