The premium tax is a tax paid to the State of Idaho on surplus line coverages written by a broker with eligible S/L insurers. For policies with effective date prior to and through December 31, 2006 the premium tax was 2.75%

For calendar year 2007 and thereafter, beginning with effective date of the policy, the tax is 1.5%.

If the policy is a multi-state risk, premium tax and stamping fee is calculated only on the portion of the premium allocable to the percentage of exposure located in Idaho.