Florida Administrative Code › 12 - DEPARTMENT OF REVENUE › 12B - Miscellaneous Tax › Chapter 12B-8 - INSURANCE PREMIUM TAXES, FEES AND SURCHARGES › Section 12B-8.016 - Retaliatory Provisions

Current through Reg. 50, No. 138; July 16, 2024
(1) When by or
				pursuant to the laws of any other state or foreign country any taxes, licenses,
				and other fees, in the aggregate, and any fines, penalties, deposit
				requirements, or other material obligations, prohibitions, or restrictions are
				or would be imposed upon Florida insurers or upon the agents or representatives
				of such insurers which are in excess of such taxes, licenses, and other fees,
				in the aggregate, or which are in excess of the fines, penalties, deposit
				requirements, or other obligations, prohibitions, or restrictions directly
				imposed upon similar insurers, or upon the agents or representatives of such
				insurers, of such other state or country under the statutes of this state, so
				long as such laws of such other state or country continue in force or are so
				applied, the same taxes, licenses, and other fees, in the aggregate, or fines,
				penalties, deposit requirements, or other material obligations, prohibitions,
				or restrictions of whatever kind shall be imposed by the department upon the
				insurers, or upon the agents or representatives of such insurers, of such other
				state or country doing business or seeking to do business in this
				state.
(2) In determining the
				retaliatory taxes to be imposed, the net premium tax is used as a starting
				point. Eighty percent of the salary credit provided by Section
				624.509(5),
				F.S., shall be added back to the State of Florida portion of the net premium
				tax for retaliatory calculations only.
(3)
(a)
				Other items which shall be included in the retaliatory calculations are:
1. The excise taxes imposed under Sections
				175.101 and
				185.08, F.S., as well as
				comparable taxes in other states.
2. The State Fire Marshal Regulatory
				Assessment imposed under Section
				624.515, F.S., as well as
				comparable assessments in other states.
3. The Florida corporate income tax (CIT)
				imposed under Chapter 220, F.S., as well as comparable taxes in other states.
				Insurers must use the prior year's taxable income and resulting CIT liability
				when calculating Florida's aggregate taxes. However, the insurer must use the
				income from the taxable year applicable for calculating any CIT in its state of
				incorporation. Such taxable years may vary depending upon the individual
				state's taxing statutes. These taxable years may reflect the prior year's
				taxable income or the current year's taxable income.
4. Deductions from premium taxes or other
				taxes otherwise payable, allowed because of real estate or personal property
				taxes paid.
5. That portion of the
				Florida Insurance Guarantee Association 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 insurer's property
				insurance premiums.
a. For purposes of
				calculating a foreign or alien insurer's includable portion of its Florida
				Insurance Guarantee Association 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 and divide them by the total premiums subject to the
				assessment. The resulting percentage would then be multiplied by the insurer's
				Florida Insurance Guarantee Association assessment to determine the portion of
				the assessment that may be added back for retaliatory tax purposes. This
				process is completed for each Florida Insurance Guarantee Association
				assessment.
b. The Florida
				Insurance Guarantee Association assessments to be used in the calculations, as
				well as the state of domicile's comparable assessment retaliatory tax add
				backs, if any, are those assessments due and payable during the taxable
				year.
6. Any other taxes,
				licenses, fees, fines, penalties, deposit requirements, material obligations,
				prohibitions, or restrictions which are or would be imposed upon Florida
				insurers or upon the agents or representatives of such insurers doing business
				in the foreign insurers' state of domicile, or upon foreign insurers or the
				agents or representatives of such insurers doing business in Florida, except
				for:
a. Personal income taxes.
b. Sales and use taxes.
c. Ad valorem taxes on real or personal
				property.
d. Special purpose
				obligations or assessments imposed in connection with particular kinds of
				insurance other than property insurance.
e. Reimbursement premiums paid to the Florida
				Hurricane Catastrophe Fund.
f.
				Emergency assessments paid to the Florida Hurricane Catastrophe
				Fund.