What coverages are exempt from tax in Alabama?

The following coverages are exempt from the Alabama surplus lines tax: 

• Reinsurance 

• Wet marine and transportation insurance 

• Insurance for property, risks, or activities located entirely outside Alabama, including vehicles or aircraft that are owned and mainly garaged outside the state 

• Insurance on railroad property or operations involved in interstate commerce 

• Insurance for aircraft that are:  

• • Owned or operated by aircraft manufacturers, or 

• • Used in scheduled interstate flights, including their cargo
    (This excludes workers’ compensation and employer’s liability coverage.) 

• Insurance related to the shipbuilding and ship repair industry engaged in interstate or foreign commerce, including coverage for vessels, cargo, watercraft, piers, wharves, dry docks, marine railways, and similar “wet marine” operations