Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 2118
Barcode 155586
CHAMBER ACTION
Senate House
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11 The Committee on Judiciary (Aronberg) recommended the
12 following amendment:
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14 Senate Amendment (with title amendment)
15 On page 6, line 13, delete that line
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17 and insert:
18 Section 2. Effective retroactively to January 1, 2004,
19 paragraph (e) is added to subsection (5) of section 624.509,
20 Florida Statutes, to read:
21 624.509 Premium tax; rate and computation.--
22 (5) There shall be allowed a credit against the net
23 tax imposed by this section equal to 15 percent of the amount
24 paid by the insurer in salaries to employees located or based
25 within this state and who are covered by the provisions of
26 chapter 443. For purposes of this subsection:
27 (e) Effective January 1, 2004, a service company that
28 is a subsidiary of a mutual insurance holding company that was
29 in existence on or before January 1, 2000, shall allocate the
30 salary of each service company employee covered by a contract
31 with a member of the mutual insurance holding company system
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 2118
Barcode 155586
1 to the company for which the employee performs services, based
2 on the time during the tax year that the employee performs
3 services or works for that company over the total time the
4 employee performs services or works for all companies in the
5 system. The total salary allocated to a company within the
6 system shall be included as employee salaries for that insurer
7 for purposes of this section.
8 1. As used in this paragraph, the term:
9 a. "Mutual insurance holding company system" means two
10 or more corporations that are subsidiaries of a mutual
11 insurance holding company in compliance with part IV of
12 chapter 628.
13 b. "Service company" means a separate corporation
14 within a mutual insurance holding company system whose
15 employees provide services to other members of the system and
16 are treated as service company employees for unemployment
17 compensation and common law purposes. The mutual insurance
18 holding company is not a service company for purposes of this
19 paragraph.
20 2. If an insurance company fails to substantiate,
21 whether by means of adequate records or otherwise, its
22 eligibility to claim the service company exception under this
23 section or its salary allocation under this section, credit is
24 not allowed.
25 Section 3. Except as otherwise expressly provided in
26 this act, this act shall take effect July 1, 2005.
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30 And the title is amended as follows:
31 On page 1, lines 6 and 7, delete the words "providing
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. SB 2118
Barcode 155586
1 an effective date"
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3 and insert:
4 amending s. 624.509, F.S.; providing an
5 alternative procedure for workers' compensation
6 insurers to obtain premium tax credits for
7 salaries paid to certain employees; providing
8 for retroactive application; providing
9 effective dates.
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