| 1 | A bill to be entitled |
| 2 | An act relating to insurance premium taxes; amending s. |
| 3 | 624.509, F.S.; subjecting to taxation gross receipts of |
| 4 | certain title insurance; providing a limitation; amending |
| 5 | s. 627.7711, F.S.; revising the definition of "premium"; |
| 6 | providing an effective date. |
| 7 |
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| 8 | Be It Enacted by the Legislature of the State of Florida: |
| 9 |
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| 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 taxable under paragraph (c)) covering property, |
| 30 | subjects, or risks located, resident, or to be performed in this |
| 31 | state, omitting premiums on reinsurance accepted, and less |
| 32 | return premiums or assessments, but without deductions: |
| 33 | 1. For reinsurance ceded to other insurers; |
| 34 | 2. For moneys paid upon surrender of policies or |
| 35 | certificates for cash surrender value; |
| 36 | 3. For discounts or refunds for direct or prompt payment |
| 37 | of premiums or assessments; and |
| 38 | 4. On account of dividends of any nature or amount paid |
| 39 | and credited or allowed to holders of insurance policies; |
| 40 | certificates; or surety, indemnity, reciprocal, or |
| 41 | interinsurance contracts or agreements.; and |
| 42 | (b) An amount equal to 1 percent of the gross receipts on |
| 43 | annuity policies or contracts paid by holders thereof in this |
| 44 | state. |
| 45 | (c) An amount equal to 1.75 percent of the gross receipts |
| 46 | on title insurance written through affiliated and nonaffiliated |
| 47 | agencies, less the portion of the gross receipts retained by |
| 48 | title insurance agents of the affiliated and nonaffiliated |
| 49 | agencies. |
| 50 | Section 2. Subsection (2) of section 627.7711, Florida |
| 51 | Statutes, is amended to read: |
| 52 | 627.7711 Definitions.--As used in this part, the term: |
| 53 | (2) "Premium" means the charge, as specified by rule of |
| 54 | the commission, that is made by a title insurer for a title |
| 55 | insurance policy, including the charge for performance of |
| 56 | primary title services by a title insurer or title insurance |
| 57 | agent or agency, and incurring the risks incident to such |
| 58 | policy, under the several classifications of title insurance |
| 59 | contracts and forms, and upon which charge a premium tax is paid |
| 60 | under s. 624.509. As used in this part or in any other law, with |
| 61 | respect to title insurance, the word "premium" does not include |
| 62 | a commission. |
| 63 | Section 3. This act shall take effect July 1, 2007. |