12B-8.016: Retaliatory Provisions
PURPOSE AND EFFECT: Under Florida’s insurance laws, property and casualty insurance companies pay Florida Insurance Guaranty Association assessments. A portion of these assessments is used to determine an insurer’s retaliatory tax obligation. Previously, the Florida Insurance Guaranty Association categorized its assessment into four separate “groups,” and the Department’s rule referenced these “groups” to help taxpayers calculate their tax liability. The Association no longer uses these “groups.” The purpose of the proposed amendments to Rule 12B-8.016, F.A.C. (Retaliatory Provisions), is to update the computation of the portion of the Florida Insurance Guaranty Association Assessment that should be included on the Florida side of the retaliatory tax computation.
SUMMARY: The proposed amendments to Rule 12B-8.016, F.A.C. (Retaliatory Provisions), update provisions regarding the Florida Insurance Guaranty Association Assessment that is to be included in the retaliatory tax computation.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 213.06(1) FS.
LAW IMPLEMENTED: 213.05, 624.509, 624.5091, 624.5092 FS.
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Larry Green at (850)922-4830. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Robert DuCasse, Tax Law Specialist, Technical Assistance and Dispute Resolution, Department of Revenue, P.O. Box 7443, Tallahassee, Florida 32314-7443, telephone (850)922-4715
THE FULL TEXT OF THE PROPOSED RULE IS:
12B-8.016 Retaliatory Provisions.
(1) through (2) No change.
(3) Credits Against the Tax.
(a)1. through 4. No change.
5. That portion of the Florida Insurance Guarantee Association (FIGA) assessment that was imposed upon the insurer’s property insurance policies, as such insurance is defined in Section 624.604, F.S. Likewise, if the state of domicile would impose a comparable assessment on a similar Florida insurer the foreign or alien insurer must include that portion of the state of domicile’s assessment that would relate to the similar foreign insurer’s Florida property insurance premiums.
a. For purposes of calculating a foreign or alien insurer’s includable portion of its Florida Insurance Guarantee Association FIGA assessment, such insurer should take the amount of premiums which can be classified as property insurance under Section 624.604, F.S., that are subject to the assessment for FIGA GROUP III and GROUP IV assessments and divide them by the total premiums subject to the assessment reported for GROUP III and GROUP IV, respectively. The resulting percentage for GROUP III property insurance premiums would then be multiplied by the insurer’s Florida Insurance Guarantee Association total GROUP III assessment to determine the portion of the allowable FIGA assessment that which may be added back for retaliatory tax purposes. The portion of the GROUP IV FIGA assessment to be added back would be determined in the same manner as GROUP III. The total includable FIGA assessment for retaliatory tax purposes would be the sum of the includable GROUP III and GROUP IV FIGA assessments. This proccess is completed for each Florida Insurance Guarantee Association assessment.
b. The Florida Insurance Guarantee Association FIGA GROUP III and GROUP IV assessments to be used in the calculations, as well as the state of domicile’s incorporation’s comparable assessment retaliatory tax add backs, if any, are those assessments due and payable during the taxable year.
(b) through (c) No change.
(4) through (5) No change.
Specific Authority 213.06(1) FS. Law Implemented 213.05, 624.509, 624.5091, 624.5092 FS. History-New 3-25-90, Amended 4-10-91, 12-9-97, 3-23-98, 10-15-01,________.