Senate Bill sb1714
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Florida Senate - 2006 SB 1714
By Senator Wise
5-1243-06 See HB
1 A bill to be entitled
2 An act relating to the insurance premium tax;
3 amending s. 624.509, F.S.; providing for
4 separate taxation of certain title insurance
5 gross receipts; providing limitations; amending
6 s. 627.7711, F.S.; revising the definition of
7 the term "premium"; providing an effective
8 date.
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10 Be It Enacted by the Legislature of the State of Florida:
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12 Section 1. Subsection (1) of section 624.509, Florida
13 Statutes, is amended to read:
14 624.509 Premium tax; rate and computation.--
15 (1) In addition to the license taxes provided for in
16 this chapter, each insurer shall also annually, and on or
17 before March 1 in each year, except as to wet marine and
18 transportation insurance taxed under s. 624.510, pay to the
19 Department of Revenue a tax on insurance premiums, premiums
20 for title insurance, or assessments, including membership fees
21 and policy fees and gross deposits received from subscribers
22 to reciprocal or interinsurance agreements, and on annuity
23 premiums or considerations, received during the preceding
24 calendar year, the amounts thereof to be determined as set
25 forth in this section, to wit:
26 (a) An amount equal to 1.75 percent of the gross
27 amount of such receipts on account of life and health
28 insurance policies covering persons resident in this state and
29 on account of all other types of policies and contracts,
30 (except annuity policies or contracts taxable under paragraph
31 (b) and title insurance policies or contracts written through
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2006 SB 1714
5-1243-06 See HB
1 affiliated and nonaffiliated agencies taxable under paragraph
2 (c),) covering property, subjects, or risks located, resident,
3 or to be performed in this state, omitting premiums on
4 reinsurance accepted, and less return premiums or assessments,
5 but without deductions:
6 1. For reinsurance ceded to other insurers;
7 2. For moneys paid upon surrender of policies or
8 certificates for cash surrender value;
9 3. For discounts or refunds for direct or prompt
10 payment of premiums or assessments; and
11 4. On account of dividends of any nature or amount
12 paid and credited or allowed to holders of insurance policies;
13 certificates; or surety, indemnity, reciprocal, or
14 interinsurance contracts or agreements.; and
15 (b) An amount equal to 1 percent of the gross receipts
16 on annuity policies or contracts paid by holders thereof in
17 this state.
18 (c) An amount equal to 1.75 percent of the gross
19 receipts on title insurance written through affiliated and
20 nonaffiliated agencies, less the portion of the gross receipts
21 retained by or paid under contract to the affiliated and
22 nonaffiliated title insurance agents. The reduction in the
23 insurer's total amount of title insurance premium gross
24 receipts received through affiliated and nonaffiliated
25 agencies may not exceed the following percentages of the total
26 title insurance premium gross receipts received by the insurer
27 through affiliated and nonaffiliated agencies:
28 1. For 2007, 20 percent.
29 2. For 2008, 45 percent.
30 3. For 2009 and subsequent years, 70 percent.
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2006 SB 1714
5-1243-06 See HB
1 Section 2. Subsection (2) of section 627.7711, Florida
2 Statutes, is amended to read:
3 627.7711 Definitions.--As used in this part, the term:
4 (2) "Premium" means the charge, as specified by rule
5 of the commission, that is made by a title insurer for a title
6 insurance policy, including the charge for performance of
7 primary title services by a title insurer or title insurance
8 agent or agency, and incurring the risks incident to such
9 policy, under the several classifications of title insurance
10 contracts and forms, and upon which charge a premium tax is
11 paid under s. 624.509. As used in this part or in any other
12 law, with respect to title insurance, the word "premium" does
13 not include a commission.
14 Section 3. This act shall take effect January 1, 2007.
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CODING: Words stricken are deletions; words underlined are additions.