1. A. In addition to the full amount of gross premiums charged by the insurer for the insurance, where Oklahoma is the home state of the insured, every person licensed pursuant to Section 1106 of this title shall collect and pay as provided in subsections A through H of this section, a sum based on the total gross premiums charged in connection with any broker-procured insurance, less any return premiums, for surplus lines insurance provided by the licensee pursuant to the license.
2. B. Where the insurance covers properties, risks or exposures located or to be performed both in and out of Oklahoma, the sum payable shall be computed based on an amount equal to six percent (6%) on that portion of the gross premiums allocated to Oklahoma, plus an amount equal to the portion of the premiums allocated to other states or territories on the basis of tax rates and fees applicable to properties, risks or exposures located or to be performed outside Oklahoma pursuant to subsection H of this section less the amount of gross premium unearned at termination of the surplus lines insurance. Any such unearned gross premium credited by the state to the surplus lines broker or licensee shall be returned to the policyholder by the broker or licensee. The surplus lines licensee is prohibited from rebating, for any reason, any part of the tax.
3. C. Gross premiums charged for independently procured insurance, less any return premiums, are subject to a tax at the rate of six percent (6%), and the insured procuring independently procured insurance, where Oklahoma is the home state and there is a multistate risk, shall pay the tax to the surplus lines clearinghouse, as provided in subsections A through H of this section, who shall transmit the same for distribution as provided by the Unauthorized Insurers and Surplus Lines Insurance Act.
4. D. Where the insurance covers properties, risks or exposures located or to be performed both in and out of Oklahoma, the sum payable shall be computed based on an amount equal to six percent (6%) on that portion of the gross premiums allocated to Oklahoma pursuant to subsection A of this section, plus an amount equal to the portion of the premiums allocated to other states or territories on the basis of the tax rates and fees applicable to properties, risks or exposures located or to be performed outside of this state pursuant to this subsection.
5. E. The Insurance Commissioner is authorized, in the exercise of his or her sole discretion and judgment, to participate in the Nonadmitted Insurance Multi-State Agreement or any other multistate agreement or compact with the same function and purpose for the purpose of collecting and disbursing to reciprocal states any funds collected pursuant to the Unauthorized Insurers and Surplus Lines Insurance Act applicable to other properties, risks or exposures located or to be performed outside of Oklahoma. To the extent that other states where portions of the properties, risks or exposures reside have failed to enter into a compact or reciprocal allocation procedure with Oklahoma, the net premium tax collected shall be retained by Oklahoma.
6. F. When the surplus lines coverage of an Oklahoma home-state insured covers properties, risks or exposures located only in Oklahoma, the surplus lines licensee or broker or self-procuring insured shall pay the surplus lines premium tax payable on such Oklahoma-only risks solely to the Oklahoma Insurance Commissioner.
7. G. In order to participate in the Nonadmitted Insurance Multi-State Agreement, the Insurance Commissioner, in the exercise of his or her sole discretion and judgment, is authorized to establish a uniform, statewide rate of taxation applicable to lines of nonadmitted insurance subject to the Agreement. This rate shall encompass all existing rates of taxation, fees and assessments imposed by this state and any political subdivision hereof, pursuant to subsection A of this section and the Insurance Commissioner shall document the method by which the statewide rate is calculated. The Insurance Commissioner is authorized to receive any monies obtained through the Insurance Commissioner in the exercise of his or her sole discretion and judgment for the collection and then the disbursement of such funds as provided by the Insurance Code.
8. H. The Insurance Commissioner is authorized to utilize or adopt any allocation schedule included in the Nonadmitted Insurance Multi-State Agreement or any other multistate agreement or compact the Insurance Commissioner may enter in the exercise of his or her sole discretion and judgment which schedule has the function and purpose of allocating risk and computing the tax due on the portion of premium attributable to each risk classification and to each state where properties, risks or exposures are located.
9. I. Policies sold to federally recognized Indian tribes shall be reported as provided in Section 1107 of this title; however, these policies shall be exempt from the surplus line tax to the extent that the Insurance Commissioner can identify that coverage is for risks which are wholly owned by a tribe and located within Indian Country, as defined in Section 1151 of Title 18 of the United States Code.

10. J. The surplus line tax on insurance on motor transit operations conducted between this and other states shall be paid on the total premium charged on all surplus line insurance less:

    1. 1. The portion of the premium determined as provided in subsection C of this section charged for operations in other states taxing the premium of an insured where Oklahoma is the home state; or
    2. 2. The premium for operations outside of this state of an insured maintaining its headquarters office outside of this state and branch office in this state.

Laws 1983, HB 1266, c. 248, § 5, emerg. eff. June 21, 1983; Amended by Laws 1991, SB 175, c. 146, § 5, eff. September 1, 1991; Amended by Laws 1997, SB 327, c. 418, § 40, eff. November 1, 1997 (superseded document available); Amended by Laws 1999, HB 1400, c. 96, § 1, emerg. eff. April 19, 1999 (superseded document available); Amended by Laws 2009, HB 1275, c. 432, § 9, emerg. eff. July 1, 2009 (superseded document available); Amended by Laws 2010, SB 2054, c. 222, § 19, eff. November 1, 2010 (superseded document available); Amended by Laws 2011, SB 778, c. 278, § 20; Amended by Laws 2011, HB 2072, c. 360, § 20 (superseded document available).