1.8% Policies Eff 4/1/2010         1.5% surcharge expired 3/31/2010            3 – 10% Municipal Tax   
            Use Our KY Tax Calculator    7/1/2011 - 12            7/1/2010 -11             7/1/2009-10   

       General Information   http://insurance.ky.gov/Static_Info.aspx?Static_ID=18&Div_id=15
      * Local Government Tax General Info  http://insurance.ky.gov/Home.aspx?Div_ID=13
     *  Commonwealth Office of Technology Map: http://kygeonet.ky.gov/tcm/index.html  (Location Search)

* Beginning July 21, 2011, the municipal tax continues to apply to single-state risks and multi-state risks where Kentucky is the home state.  Any applicable local government premium tax will be based on the portion of risk within the local government boundaries.

Note on KY Municipal Tax and Commissions - The tax required by KRS 91A.080 is a tax on premium but is not considered a part of the premium, with some exception.  The term "premium" is defined by KRS 304.14-030. That definition does not include "taxes" as part of the premium.  A link to the statute is below.    
From the KY DOI;
"With respect to the issue presented, the office would not prohibit the payment of commissions with the tax included as a part of the premium.  However, KRS 304.14-030 would be sufficient to justify a company excluding the tax amount from the "premium" for the purpose of commission calculation".
 
http://www.lrc.state.ky.us/KRS/304-14/030.PDF 

Pursuant to KRS 304.10-050 and 806 KAR 10:050 surplus lines brokers must report every premium-bearing surplus lines transaction within 60 days of the transaction (90 days if placed with an alien insurer) by one of two methods:

• electronically, using DOI's eServices site; or,
• by submitting a paper affidavit for Surplus Lines Transactions (Form S.L 1) and other supporting documentation.

Yes     within 60 days  
    Procedure   http://insurance.ky.gov/Static_Info.aspx?Static_ID=18&Div_id=15
       Form         http://insurance.ky.gov/Documents/SL_affidavit_w_lobrevwoutloc0608.pdf
       Inst           http://insurance.ky.gov/Static_Info.aspx?Static_ID=18&Div_id=15

Effective on and after 7/1/2010, affidavits must be filed electronically through the Department's
website at:      https://insurance.ky.gov/eservices/default.aspx
or File Transfer Protocol (FTP upload) through prior arrangement with the Department. 

To File the affidavit on line, click on eServices.     User name and password are required.

To obtain affidavit information and forms, go to:

     http://insurance.ky.gov/Docs.aspx?Div_id=15#27

     Scroll down to Surplus Lines Broker Documents.  

Eff 7/21/2011 NRRA Exempt Commercial Purchaser is exempt from due diligence requirements

 304.4-040 Revocation of authority for failure to pay    http://www.lrc.state.ky.us/KRS/304-04/040.PDF

Filing Requirements:

Affidavit online or paper within 60 days.   Quarterly within 30 days

    The Surplus Lines Broker Quarterly Report can be downloaded from
http://insurance.ky.gov/Documents/slquarsta0608.pdf

     Procedures for completing the Quarterly Report can be downloaded from
http://insurance.ky.gov/Documents/SLBinfo072908.pdf

*Local Government Premium Tax  -  Annual Report due by March 31st  -  Zero Report Required
 An annual reporting of this tax must be sent each year to the DOI by March 31, concerning the tax paid in the preceding year.  This report must be filed electronically. There is a $5 filing fee.  An advisory bulletin concerning this topic can be found at:
http://insurance.ky.gov/Bulletin.aspx (Bulletin 09-03)
 Instructions on how to file electronically can be found at:
http://insurance.ky.gov/Docs.aspx?Div_ID=13 (Annual Reconciliation Electronic Submission)

Annual Municipal Tax Reconciliation (LGT 140) Forms and Instructions: http://insurance.ky.gov/Docs.aspx?Div_ID=13
 A hard copy of the tax payment and all quarterly and annual reports will need to be sent to the taxing entity (city or county).

Download Forms:

 Instructions  http://insurance.ky.gov/Docs.aspx?Div_id=15#37

  Premium and Surcharge Forms: http://revenue.ky.gov/forms/cuyrfrms.htm
 * Note: There is a Monthly (74A118) and Annual Calendar Year (74A118A due Jan 20th) report.

Annual Municipal Tax Reconciliation (LGT 140) Forms and Instructions: http://insurance.ky.gov/Docs.aspx?Div_ID=13

Kentucky Surplus Lines Assn
c/o W.E. Kingsley Co.
PO Box 22700
Lexington, KY 40522