Colorado § 10-5-111 - Tax on premiums - filing system - division to contract with third parties - rules - definition.

§ 10-5-111. Tax on premiums - filing system - division to contract with third parties - rules - definition.

(1) Each surplus line broker and every person that enters into an independent procurement for nonadmitted insurance shall remit to the division a tax on the net premiums, exclusive of sums collected to cover federal and other state taxes and examination fees, on nonadmitted insurance subject to tax under this article during the preceding reporting period as shown by the statement filed with the commissioner. The net premiums must be taxed at the rates described in section 10-5-111.5.

(2) If a surplus line policy or independently procured policy covers an insured whose home state is Colorado, and that policy covers risks or exposures located outside of Colorado, the tax payable is computed using the allocation method contained in section 10-5-111.5.

(3) (a) All taxes, penalties, fines, fees, and associated filings required pursuant to this section must be submitted to the division through a secure web-based application system identified by the division. The commissioner may enter into a contract with a qualified third party, including the Florida Surplus Line Services Office, for a secure web-based application system that would allow taxpayers to file taxes for multiple states on a single web-based application system. The third party may charge the taxpayer a nominal fee for this service that is reasonably related to the overall cost of the service of collecting filings and payments and transmitting those filings and payments to the division. A fee charged by the third party as part of this subsection (3) is not subject to this section, section 10-3-207, section 10-3-209 (4)(a), or section 10-5-111.5 (1).

(b) Pursuant to article 4 of title 24, the commissioner may promulgate rules necessary to implement, operate, and enforce this subsection (3).

(c) In contracting with a qualified third party for a secure web-based application system described in this subsection (3), the commissioner is exempt from the "Procurement Code", articles 101 to 112 of title 24.

(d) As used in this subsection (3), "taxpayer" means a person subject to tax under this section 10-5-111.

Source: L. 49: p. 470, § 10. CSA: C. 87, § 327. CRS 53: § 72-14-10. C.R.S. 1963: § 72-13-10. L. 92: (1) amended, p. 1761, § 2, effective February 28. L. 2012: Entire section amended, (HB 12-1215), ch. 104, p. 353, § 4, effective August 8. L. 2024: (3) added, (HB 24-1119), ch. 38, p. 137, § 3, effective March 22.

Cross references: (1) For additional taxes required by this article 5, see § 10-3-209.

(2) For the legislative declaration in HB 24-1119, see section 1 of chapter 38, Session Laws of Colorado 2024.