| 1 | A bill to be entitled |
| 2 | An act relating to state excise tax on casualty insurance |
| 3 | premiums; amending s. 185.08, F.S.; authorizing certain |
| 4 | municipalities to assess and impose the tax to receive |
| 5 | certain police protection services; requiring an |
| 6 | interlocal agreement; providing agreement requirements; |
| 7 | providing for distribution of tax proceeds; providing an |
| 8 | effective date. |
| 9 |
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| 10 | Be It Enacted by the Legislature of the State of Florida: |
| 11 |
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| 12 | Section 1. Subsection (1) of section 185.08, Florida |
| 13 | Statutes, is amended to read: |
| 14 | 185.08 State excise tax on casualty insurance premiums |
| 15 | authorized; procedure.--For any municipality, chapter plan, |
| 16 | local law municipality, or local law plan under this chapter: |
| 17 | (1)(a) Each incorporated municipality in this state |
| 18 | described and classified in s. 185.03, as well as each other |
| 19 | city or town of this state which on July 31, 1953, had a |
| 20 | lawfully established municipal police officers' retirement trust |
| 21 | fund or city fund, by whatever name known, providing pension or |
| 22 | relief benefits to police officers as provided under this |
| 23 | chapter, may assess and impose on every insurance company, |
| 24 | corporation, or other insurer now engaged in or carrying on, or |
| 25 | who shall hereafter engage in or carry on, the business of |
| 26 | casualty insurance as shown by records of the Office of |
| 27 | Insurance Regulation of the Financial Services Commission, an |
| 28 | excise tax in addition to any lawful license or excise tax now |
| 29 | levied by each of the said municipalities, respectively, |
| 30 | amounting to .85 percent of the gross amount of receipts of |
| 31 | premiums from policyholders on all premiums collected on |
| 32 | casualty insurance policies covering property within the |
| 33 | corporate limits of such municipalities, respectively. |
| 34 | (b) An incorporated municipality that is not otherwise |
| 35 | eligible to assess and impose the tax authorized in paragraph |
| 36 | (a) may assess and impose the tax only pursuant to an interlocal |
| 37 | agreement with another incorporated municipality eligible to |
| 38 | assess and impose the tax authorized in paragraph (a) that |
| 39 | agrees to provide police protection services to the otherwise |
| 40 | ineligible municipality in its entirety and for at least 12 |
| 41 | months in exchange for receiving the proceeds of the tax. The |
| 42 | excise tax may be levied on all premiums collected on casualty |
| 43 | insurance policies covering property located within the |
| 44 | corporate limits of the municipality receiving the police |
| 45 | protection services. In order to be eligible to receive such |
| 46 | premium taxes, the municipality providing the police services |
| 47 | must notify the division that it has entered into an interlocal |
| 48 | agreement with another municipality to provide police protection |
| 49 | services to that municipality. The municipality receiving the |
| 50 | police services may enact an ordinance levying the tax as |
| 51 | provided in this section. Upon being provided copies of the |
| 52 | interlocal agreement and the municipal ordinance levying the |
| 53 | tax, the division may distribute any premium taxes reported for |
| 54 | the municipality receiving the police services to the |
| 55 | participating municipality providing the police services as long |
| 56 | as the interlocal agreement is in effect. |
| 57 | Section 2. This act shall take effect upon becoming a law. |