HB 857

1	A bill to be entitled
2	An act relating to the insurance premium tax; amending s.
3	624.509, F.S.; providing for separate taxation of certain
4	title insurance gross receipts; providing limitations;
5	amending s. 627.7711, F.S.; revising the definition of the
6	term "premium"; providing an effective date.
7
8	Be It Enacted by the Legislature of the State of Florida:
9
10	Section 1.  Subsection (1) of section 624.509, Florida
11	Statutes, is amended to read:
12	624.509  Premium tax; rate and computation.--
13	(1)  In addition to the license taxes provided for in this
14	chapter, each insurer shall also annually, and on or before
15	March 1 in each year, except as to wet marine and transportation
16	insurance taxed under s. 624.510, pay to the Department of
17	Revenue a tax on insurance premiums, premiums for title
18	insurance, or assessments, including membership fees and policy
19	fees and gross deposits received from subscribers to reciprocal
20	or interinsurance agreements, and on annuity premiums or
21	considerations, received during the preceding calendar year, the
22	amounts thereof to be determined as set forth in this section,
23	to wit:
24	(a)  An amount equal to 1.75 percent of the gross amount of
25	such receipts on account of life and health insurance policies
26	covering persons resident in this state and on account of all
27	other types of policies and contracts, (except annuity policies
28	or contracts taxable under paragraph (b) and title insurance
29	policies or contracts written through affiliated and
30	nonaffiliated agencies taxable under paragraph (c),) covering
31	property, subjects, or risks located, resident, or to be
32	performed in this state, omitting premiums on reinsurance
33	accepted, and less return premiums or assessments, but without
34	deductions:
35	1.  For reinsurance ceded to other insurers;
36	2.  For moneys paid upon surrender of policies or
37	certificates for cash surrender value;
38	3.  For discounts or refunds for direct or prompt payment
39	of premiums or assessments; and
40	4.  On account of dividends of any nature or amount paid
41	and credited or allowed to holders of insurance policies;
42	certificates; or surety, indemnity, reciprocal, or
43	interinsurance contracts or agreements.; and
44	(b)  An amount equal to 1 percent of the gross receipts on
45	annuity policies or contracts paid by holders thereof in this
46	state.
47	(c)  An amount equal to 1.75 percent of the gross receipts
48	on title insurance written through affiliated and nonaffiliated
49	agencies, less the portion of the gross receipts retained by or
50	paid under contract to the affiliated and nonaffiliated title
51	insurance agents. The reduction in the insurer's total amount of
52	title insurance premium gross receipts received through
53	affiliated and nonaffiliated agencies may not exceed the
54	following percentages of the total title insurance premium gross
55	receipts received by the insurer through affiliated and
56	nonaffiliated agencies:
57	1.  For 2007, 20 percent.
58	2.  For 2008, 45 percent.
59	3.  For 2009 and subsequent years, 70 percent.
60	Section 2.  Subsection (2) of section 627.7711, Florida
61	Statutes, is amended to read:
62	627.7711  Definitions.--As used in this part, the term:
63	(2)  "Premium" means the charge, as specified by rule of
64	the commission, that is made by a title insurer for a title
65	insurance policy, including the charge for performance of
66	primary title services by a title insurer or title insurance
67	agent or agency, and incurring the risks incident to such
68	policy, under the several classifications of title insurance
69	contracts and forms, and upon which charge a premium tax is paid
70	under s. 624.509. As used in this part or in any other law, with
71	respect to title insurance, the word "premium" does not include
72	a commission.
73	Section 3.  This act shall take effect January 1, 2007.

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