The surplus lines division of the State of Tennessee announced yesterday that Governor Haslam has signed into law on June 10th, HB 966 to be effective June 11, 2011. The immediate change is to the Surplus Lines Tax which is now 5 % across the board. 

This is a change from 2.5 % for casualty lines and 3.25 % for property lines. We did receive confirmation today that the agent and broker are responsible for the collection of these taxes retroactive back to the effective date of June 11th. 

Unfortunately, this could require additional billings from us to you and your client on policies bound or endorsed with an effective date June 11th forward. We regret this inconvenience but we have no choice in the matter .

To view a copy of this bill you can go to the following: http://www.tn.gov/sos/acts/107/pub/pc0446.pdf