Definition of "Tax multiplier"

Kathryn Churchman real estate agent
Kathryn Churchman, Real Estate Agent Long & Foster Real Estate, Inc.

Factor applied in retrospective rating in order to increase the basic premium to cover state premium taxes for liability and workers compensation insurance. For example, if a state premium tax is 2%, the tax multiplier used in the formula to determine the retrospective premium would be 1.02.

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