Oregon Surplus Lines: Premium Tax, Stamping Office, and Filing Requirements

Tax and stamping

Oregon surplus lines premium tax is collected from the insured and remitted through the Oregon Surplus Lines Association (OSLA), the stamping office. OSLA reviews filings, stamps transactions, collects tax, and remits it to DCBS. The producer remains responsible for payment even if the insured fails to pay the tax.

Rate and filing

The current surplus lines tax rate is 2.3% of gross premium. File on the schedule and in the format OSLA requires; late or incomplete filings can draw penalties and license action. Return premiums may generate a credit, but only with supporting documentation.

Worked example

A policy has $10,000 gross premium. Tax at 2.3% is $230. The producer collects $10,230, remits the $230 with the OSLA filing, and keeps proof of payment. If the policy is cancelled and $4,000 premium is returned, the producer documents the return premium and claims the corresponding tax credit.

Traps that cost marks

Do not quote a net premium that hides the tax. Do not send tax directly to the insurer or keep it in the agency operating account. Do not assume a zero-tax filing is unnecessary. Do not miss the filing deadline because the insured has not paid.