January 26, 2018

 

Proposed Legislation Changing the Surplus Lines Tax Rate – HB 465

House Bill 465 (HB 465) is legislation we are closely monitoring that could have an immediate impact upon our industry. The bill includes a repeal of the language in F.S. 626.932 (3), which limits the tax rate for multistate risks to the rate of the state where the risk or exposure is located.  This repeal would mean Florida multistate risks would be charged the same tax rate regardless of where the risk is located.  In addition, the bill also proposes to lower the overall surplus lines premium tax from the current 5% to 4.936% to maintain revenue neutrality resulting from the aforementioned change.

This new tax rate would apply to all Florida surplus lines policies—not just multistate risks.

The bill would also lower the threshold for requiring only one declination when completing the diligent effort form on residential structures from the current $1 million to $700,000 dwelling replacement costs, pursuant to F.S. 626.914(4).  Finally, the bill also removes an insurer eligibility requirement to be more in line with federal law.  

If passed, this bill will be effective upon becoming law.

You can monitor HB 465 here.   

Upcoming Due Dates

Payments for all service fees, taxes and assessments invoiced for 4th quarter submissions on January 1, 2018 are due no later than February 14, 2018. 

Affidavits for 4Q17 are also due no later than February 14, 2018.

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Have questions? Contact us at 800.562.4496, option 1 or email agent.services@fslso.com.

 
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