Premium Tax Service
If you've seen the published premium tax schedules, you know that
calculating the correct tax can be a complex and time-consuming task.
Just looking at a property's postal address doesn't tell you what tax
jurisdiction it's in and eyeballing ordinary road maps to figure out
your customers' tax jurisdictions isn't accurate and absorbs hours of
valuable staff time. And a simple clerical error could turn into a
costly compliance problem with state regulators.
But now, you can cut through the confusion with LOCATION® Premium Tax Service — a tool that helps you quickly and accurately determine local premium taxes.
The service is available in Delaware, Florida, Kentucky, Illinois, Mississippi, New York, and South Carolina.
Attention Kentucky insurers
As of January 1, 2010, if you issue or renew policies in Kentucky, you have to use a department-approved risk-location system.
LOCATION Premium Tax Service was the first risk-location system verified by the
Kentucky Department of Insurance as meeting its acceptance criteria. The
Kentucky Department of Insurance Market Conduct Division uses LOCATION
Premium Tax Service as an examination tool to audit premium tax
assignments.
Here's how it works
LOCATION Premium Tax Service merges the most comprehensive postal, parcel, and
street databases with state-of-the-art geographic information systems
(GIS) technology to determine each policyholder's correct location and
premium tax. The service also indicates if insureds are in multiple tax
zones.
The boundaries of jurisdictions assessing premium taxes can frustrate insurer efforts to assign the proper tax codes because:
- your customers' postal addresses can differ from the municipalities or fire districts that collect taxes
- the boundary lines of many cities, towns, and fire districts are difficult to decipher and change frequently
- an individual may be subject to taxation by more than one jurisdiction
LOCATION Premium Tax Service combines geographic databases of up-to-date
information on municipal and fire district boundaries with premium tax
information from state departments of insurance and other government
agencies.
LOCATION Premium Tax Service comes to you as a flat-file database for you to
host. The service is also available online or through a web service
connection.
All the data you need
LOCATION Premium Tax Service gives you:
- the appropriate tax codes
- the name of the tax territory
- alternative tax-territory names and codes for properties subject to multiple taxes
- the lines of business subject to premium tax
- the tax rate by line of business
- the type of tax
- the tax revision date, reflecting the latest update
Here's
an area of New York State with premium tax based on fire districts.
Using GIS technology and ISO's extensive knowledge of fire district
boundaries, LOCATION Premium Tax Service accurately determines the fire
tax jurisdictions for your policyholders.
Want to know more?
To find out how you can get LOCATION — or to request more information — contact ISO. You can also call us at 1-800-888-4476.
|
