Insurance Premium Tax Rule Hearing Report: June 29

Today, June 29, 2009, the Florida Department of Revenue (“DOR”), Division of Miscellaneous Tax had scheduled a Rule Hearing on Proposed Rule 12B-8.001:  Premium Tax; Rate and Computation, however, because a hearing had not been requested, none was held. 

The Hearing Notice and complete Rule text may be viewed by clicking here.

The proposed amendments to the Rule 12B-8.001, F.A.C. include:

• Technical corrections such as statute reference updates, expiration dates, and references, and the removal of obsolete language regarding the annuity exemption in effect prior to July 1, 1990;
• The inclusion of corporation not-for-profit self-insurance funds under Section 624.4625, F.S., and Public Housing Authorities Self-Insurance Funds under Section 624.46226, F.S., as entities whose premiums, contributions, and assessments are subject to a 1.6 percent tax;
• The clarification that dividends used to purchase paid-up additions are not an additional gross receipt;
• The incorporation of information on the Florida Life and Health Insurance Guaranty Association Assessment, including payments due as a result of Florida Life and Health Insurance Guaranty Association refunds of prior assessments that were used in the computation of credits by an insurer, and the acceleration of Florida Life and Health Insurance Guaranty Association credits when an insurer surrenders its certificate of authority and ceases doing business in Florida;
• A reference to Section 624.50921, F.S., for the insurance premium tax credits for assessments paid under Chapter 440, F.S., and the corporate income tax paid under Chapter 220, F.S.; and
• General information on the salary tax credit exceptions.

The proposed Rule will next proceed to the Florida Financial Services Commission for final adoption.

Should you have any questions or comments, please contact Colodny Fass.

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