Tax Exempt Policies
There are statutory exemptions for certain types of policies under the North Carolina Surplus Lines Act. Policies that fall within one of the coverage codes with a non-taxable status (tax status codes) are not subject to surplus lines premium tax.
- All tax-exempt filings are subject to the surplus lines stamping fee, except for North Carolina state owned property.
Tax-exempt filings are to be entered in SLIP, but will not receive an approval until the NCDOI has been notified of such filing and has approved the tax-exempt status for such risk.
Tax Exempt Procedures - Step 1
File the policy in SLIP with a non-taxable tax status. SLIP will mark this as a Transaction in Question.
Tax Exempt Procedures - Step 2
The Stamping Office will ask for supporting documentation to present to the NCDOI for a decision on the tax status.
Tax Exempt Procedures - Step 3
The NCDOI will review each policy on a case by case basis for tax-exempt approval.