Florida Senate - 2012                                    SB 1190
       By Senator Hays
       20-00989A-12                                          20121190__
    1                        A bill to be entitled                      
    2         An act relating to insurance premium taxes; amending
    3         s. 624.509, F.S.; exempting contributions to surplus
    4         which are collected by a mutual property and casualty
    5         insurance company domiciled in this state from its
    6         policyholders from insurance premium taxes under
    7         certain circumstances; providing an effective date.
    9  Be It Enacted by the Legislature of the State of Florida:
   11         Section 1. Subsection (1) of section 624.509, Florida
   12  Statutes, is amended to read:
   13         624.509 Premium tax; rate and computation.—
   14         (1)(a) In addition to the license taxes provided for in
   15  this chapter, each insurer shall also annually, and on or before
   16  March 1 in each year, except as to wet marine and transportation
   17  insurance taxed under s. 624.510, pay to the Department of
   18  Revenue a tax on insurance premiums, premiums for title
   19  insurance, or assessments, including membership fees and policy
   20  fees and gross deposits received from subscribers to reciprocal
   21  or interinsurance agreements, and on annuity premiums or
   22  considerations, received during the preceding calendar year, the
   23  following amounts thereof to be determined as set forth in this
   24  section, to wit:
   25         1.(a) An amount equal to 1.75 percent of the gross amount
   26  of such receipts on account of life and health insurance
   27  policies covering persons resident in this state and on account
   28  of all other types of policies and contracts, (except annuity
   29  policies or contracts taxable under subparagraph 2., paragraph
   30  (b)) covering property, subjects, or risks located, resident, or
   31  to be performed in this state, omitting premiums on reinsurance
   32  accepted, and less return premiums or assessments, but without
   33  deductions:
   34         a.1. For reinsurance ceded to other insurers;
   35         b.2. For moneys paid upon surrender of policies or
   36  certificates for cash surrender value;
   37         c.3. For discounts or refunds for direct or prompt payment
   38  of premiums or assessments; and
   39         d.4. On account of dividends of any nature or amount paid
   40  and credited or allowed to holders of insurance policies;
   41  certificates; or surety, indemnity, reciprocal, or
   42  interinsurance contracts or agreements; and
   43         2.(b) An amount equal to 1 percent of the gross receipts on
   44  annuity policies or contracts paid by holders thereof in this
   45  state.
   46         (b) The amount collected by a mutual property and casualty
   47  insurance company domiciled in this state from its policyholders
   48  as a contribution to surplus is exempt from the tax on premiums
   49  under this subsection if the contribution to surplus is:
   50         1. Authorized by the insurer’s bylaws as approved by the
   51  Office of Insurance Regulation;
   52         2. Identified by the insurer as a contribution to surplus
   53  on the declarations page attached to each policy issued or
   54  renewed by the insurer; and
   55         3. Described in the insurer’s underwriting manual and the
   56  contribution to surplus was approved by the Office of Insurance
   57  Regulation as not being part of the insurer’s rate filing which
   58  was filed with and approved by the office.
   60  The amount of the insurer’s premium subject to the tax on
   61  premiums and the amount of the contribution to surplus which is
   62  not subject to the tax on premiums must be stated separately in
   63  the notes to the annual and quarterly financial statements filed
   64  by the insurer with the Office of Insurance Regulation.
   65         Section 2. This act shall take effect July 1, 2012.