The New York State Department of Taxation and Finance issued a memorandum regarding changes to the New York tax laws affecting insurance independently procured from unauthorized insurers in order to conform New York law to the requirements of the Nonadmitted and Reinsurance Reform Act of 2010.
In New York, tax on insurance effective on or after July 21, 2011 purchased from or renewed by unauthorized insurers that is not procured through a licensed excess line broker will be calculated on 100% of gross written premiums when New York is the home state of the insured. The rate of tax in New York will continue to be 3.6%. Tax on insurance effective on or before July 20, 2011 that is independently procured from unauthorized insurers will continue to be allocated amongst various states when such insurance is for risks located within and without of the state of New York.
To address the new law, New York taxpayers independently procuring insurance from an unauthorized insurer should use form CT-33-D(4/11) for taxable insurance contracts with an effective date on or before July 21, 2011 and form CT-33-D(7/11) for taxable insurance contracts with an effective date on or after July 21, 2011.