| 1 | The Fiscal Council recommends the following: |
| 2 |
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| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to the insurance premium tax; amending s. |
| 7 | 624.509, F.S.; providing for separate taxation of certain |
| 8 | title insurance premiums; providing a definition; |
| 9 | providing an effective date. |
| 10 |
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| 11 | Be It Enacted by the Legislature of the State of Florida: |
| 12 |
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| 13 | Section 1. Subsection (1) of section 624.509, Florida |
| 14 | Statutes, is amended to read: |
| 15 | 624.509 Premium tax; rate and computation.-- |
| 16 | (1) In addition to the license taxes provided for in this |
| 17 | chapter, each insurer shall also annually, and on or before |
| 18 | March 1 in each year, except as to wet marine and transportation |
| 19 | insurance taxed under s. 624.510, pay to the Department of |
| 20 | Revenue a tax on insurance premiums, premiums for title |
| 21 | insurance, or assessments, including membership fees and policy |
| 22 | fees and gross deposits received from subscribers to reciprocal |
| 23 | or interinsurance agreements, and on annuity premiums or |
| 24 | considerations, received during the preceding calendar year, the |
| 25 | amounts thereof to be determined as set forth in this section, |
| 26 | to wit: |
| 27 | (a) An amount equal to 1.75 percent of the gross amount of |
| 28 | such receipts on account of life and health insurance policies |
| 29 | covering persons resident in this state and on account of all |
| 30 | other types of policies and contracts, (except annuity policies |
| 31 | or contracts taxable under paragraph (b) and title insurance |
| 32 | policy premiums taxable under paragraph (c),) covering property, |
| 33 | subjects, or risks located, resident, or to be performed in this |
| 34 | state, omitting premiums on reinsurance accepted, and less |
| 35 | return premiums or assessments, but without 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 0.6 percent of the premiums for |
| 49 | title insurance policies on property located in this state. For |
| 50 | purposes of this paragraph, the term "premium" has the same |
| 51 | meaning as provided in s. 627.7711(2). |
| 52 | Section 2. This act shall take effect January 1, 2007. |