HB 1653

1	A bill to be entitled
2	An act relating to the insurance premium tax; amending s.
3	624.509, F.S.; requiring insurers to pay premium tax on
4	certain title insurance premium gross receipts; providing
5	limitations; amending s. 627.7711, F.S.; revising a
6	definition of the term "premium" for title insurance
7	purposes; providing an effective date.
8
9	Be It Enacted by the Legislature of the State of Florida:
10
11	Section 1.  Subsection (1) of section 624.509, Florida
12	Statutes, is amended to read:
13	624.509  Premium tax; rate and computation.--
14	(1)  In addition to the license taxes provided for in this
15	chapter, each insurer shall also annually, and on or before
16	March 1 in each year, except as to wet marine and transportation
17	insurance taxed under s. 624.510, pay to the Department of
18	Revenue a tax on insurance premiums, premiums for title
19	insurance, or assessments, including membership fees and policy
20	fees and gross deposits received from subscribers to reciprocal
21	or interinsurance agreements, and on annuity premiums or
22	considerations, received during the preceding calendar year, the
23	amounts thereof to be determined as set forth in this section,
24	to wit:
25	(a)  An amount equal to 1.75 percent of the gross amount of
26	such receipts on account of life and health insurance policies
27	covering persons resident in this state and on account of all
28	other types of policies and contracts (except annuity policies
29	or contracts taxable under paragraph (b) and title insurance
30	policies or contracts written through affiliated and
31	nonaffiliated agencies and taxable under paragraph (c)) covering
32	property, subjects, or risks located, resident, or to be
33	performed in this state, omitting premiums on reinsurance
34	accepted, and less return premiums or assessments, but without
35	deductions:
36	1.  For reinsurance ceded to other insurers.;
37	2.  For moneys paid upon surrender of policies or
38	certificates for cash surrender value.;
39	3.  For discounts or refunds for direct or prompt payment
40	of premiums or assessments.; and
41	4.  On account of dividends of any nature or amount paid
42	and credited or allowed to holders of insurance policies;
43	certificates; or surety, indemnity, reciprocal, or
44	interinsurance contracts or agreements.; and
45	(b)  An amount equal to 1 percent of the gross receipts on
46	annuity policies or contracts paid by holders thereof in this
47	state.
48	(c)  An amount equal to 1.75 percent of the gross receipts
49	on title insurance written through affiliated and nonaffiliated
50	agencies, less the portion of the gross receipts retained by or
51	paid under contract to any title insurance agents of the
52	affiliated or nonaffiliated agencies. This reduction in the
53	insurer?s total amount of title insurance premium gross receipts
54	received through affiliated and nonaffiliated agencies may not
55	exceed 70 percent of the total title insurance premium gross
56	receipts received by the insurer through affiliated and
57	nonaffiliated agencies.
58	Section 2.  Subsection (2) of section 627.7711, Florida
59	Statutes, is amended to read:
60	627.7711  Definitions.--As used in this part, the term:
61	(2)  "Premium" means the charge, as specified by rule of
62	the commission, that is made by a title insurer for a title
63	insurance policy, including the charge for performance of
64	primary title services by a title insurer or title insurance
65	agent or agency, and incurring the risks incident to such
66	policy, under the several classifications of title insurance
67	contracts and forms, and upon which charge a premium tax is paid
68	under s. 624.509. As used in this part or in any other law, with
69	respect to title insurance, the word "premium" does not include
70	a commission.
71	Section 3.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.