Senate Bill sb2528

    Florida Senate - 2004                                  SB 2528

    By Senator Wise





    5-958-04

  1                      A bill to be entitled

  2         An act relating to insurance premium taxes;

  3         amending s. 624.509, F.S.; exempting a portion

  4         of title insurance premiums from a premium tax;

  5         amending s. 627.7711, F.S.; redefining the term

  6         "premium" to conform; providing an effective

  7         date.

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  9  Be It Enacted by the Legislature of the State of Florida:

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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

15  this chapter, each insurer shall also annually, and on or

16  before March 1 in each year, except as to wet marine and

17  transportation insurance taxed under s. 624.510, pay to the

18  Department of Revenue a tax on insurance premiums, premiums

19  for title insurance, or assessments, including membership fees

20  and policy fees and gross deposits received from subscribers

21  to reciprocal or interinsurance agreements, and on annuity

22  premiums or considerations, received during the preceding

23  calendar year, the amounts thereof to be determined as set

24  forth in this section, to wit:

25         (a)  An amount equal to 1.75 percent of the gross

26  amount of such receipts on account of life and health

27  insurance policies covering persons resident in this state and

28  on account of all other types of policies and contracts,

29  (except annuity policies or contracts taxable under paragraph

30  (b)) and title insurance policies or contracts written through

31  affiliated and nonaffiliated agencies taxable under paragraph

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    Florida Senate - 2004                                  SB 2528
    5-958-04




 1  (c), covering property, subjects, or risks located, resident,

 2  or to be performed in this state, omitting premiums on

 3  reinsurance accepted, and less return premiums or assessments,

 4  but without deductions:

 5         1.  For reinsurance ceded to other insurers;

 6         2.  For moneys paid upon surrender of policies or

 7  certificates for cash surrender value;

 8         3.  For discounts or refunds for direct or prompt

 9  payment of premiums or assessments; and

10         4.  On account of dividends of any nature or amount

11  paid and credited or allowed to holders of insurance policies;

12  certificates; or surety, indemnity, reciprocal, or

13  interinsurance contracts or agreements; and

14         (b)  An amount equal to 1 percent of the gross receipts

15  on annuity policies or contracts paid by holders thereof in

16  this state; and.

17         (c)  An amount equal to 1.75 percent of the gross

18  receipts on title insurance written through affiliated and

19  nonaffiliated agencies, less the portion of the gross receipts

20  retained by or paid under contract to the affiliated and

21  nonaffiliated title insurance agents. The reduction in the

22  insurer's total amount of title insurance premium gross

23  receipts received through affiliated and nonaffiliated

24  agencies may not exceed 70 percent of the total title

25  insurance premium gross receipts received by the insurer

26  through affiliated and nonaffiliated agencies.

27         Section 2.  Subsection (2) of section 627.7711, Florida

28  Statutes, is amended to read:

29         627.7711  Definitions.--As used in this part, the term:

30         (2)  "Premium" means the charge, as specified by rule

31  of the commission, that is made by a title insurer for a title

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    Florida Senate - 2004                                  SB 2528
    5-958-04




 1  insurance policy, including the charge for performance of

 2  primary title services by a title insurer or title insurance

 3  agent or agency, and incurring the risks incident to such

 4  policy, under the several classifications of title insurance

 5  contracts and forms, and upon which charge a premium tax is

 6  paid under s. 624.509.  As used in this part or in any other

 7  law, with respect to title insurance, the word "premium" does

 8  not include a commission.

 9         Section 3.  This act shall take effect July 1, 2004.

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12                          SENATE SUMMARY

13    Exempts a portion of title insurance premiums from a
      premium tax.
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