Tax Status Codes

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, 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.

• File the policy in SLIP with a nontaxable tax status. SLIP will mark this as a Transaction in Question.
• The Stamping Office will ask for supporting documentation to present to the NCDOI for a decision on the tax status.
• The NCDOI will review each policy on a case by case basis for tax-exempt approval.

This is the standard tax code that applies to all policies that do not qualify as a non-taxable coverage.

Applicable to commercial airport/aircraft coverages (coverage codes 9000 – 9004).

This status is not applicable to personal and pleasure aircraft or drones (coverage codes 9005, 9006).

Applicable to all coverage codes for certain governmental entities and federal exempted insureds (i.e. Federal Credit Union, Indian reservations) that have been approved by the NCDOI.

This should only be selected if the insured is a risk of the state government, its agencies or a member of a local government risk pool operating under Article 23 of Chapter 58.

Applicable to certain ocean cargo coverages (coverage codes 3000*, 3001*, 3002, 3003, 3004, 3005, 3007, 3008). *Can also be taxable.

This status is not applicable to personal and pleasure boats and yachts.

This applies only to state owned properties and any risk that has been individually approved by the NCDOI as having a non-taxable status.