Florida Insurance Premium Taxes and Fees

• Insurance Premium Tax – imposed on insurers
• State Fire Marshal Regulatory Assessment – imposed on insurers with a surcharge imposed on policyholders
• Wet Marine and Transportation Tax – imposed on insurers
• Firefighters’ Pension Trust Fund Excise Tax – imposed on insurers
• Municipal Police Officers’ Retirement Trust Fund Excise Tax – imposed on insurers
• Retaliatory Tax – imposed on insurers
• Filing Fees – imposed on insurers
• Commercial / Residential Policy Surcharge – imposed on policyholders

For more information on each of these insurance premium taxes and fees, see the Insurance Premium Taxes and Fees Return (Form DR-908 ) and the instructions (Form DR-908N ).

Tax is due on:

• Insurance premiums
• Premiums for title insurance
• Assessments, including membership fees, policy fees, and gross deposits received from subscribers to reciprocal or interinsurance agreements
• Annuity premiums or considerations
• Gross underwriting profit on wet marine and transportation insurance

Additionally:

• Insurers must pay a regulatory assessment on fire insurance policies issued and insuring property in Florida and must collect a surcharge on commercial policies from policyholders.
• Insurers selling property insurance in Florida must pay an excise tax levied by participating Florida municipalities and fire districts for a firefighters’ pension trust fund.
• Insurers selling casualty insurance in Florida must pay an excise tax levied by participating Florida municipalities for a police officers’ retirement trust fund.
• Insurers must collect a surcharge on certain commercial and residential policies for emergency management.
• Insurers pay a retaliatory tax to the extent the insurer’s state of domicile would impose a greater tax burden than Florida imposes.

The premium/underwriting profit taxes, excise taxes, and regulatory assessment must be reported on the Insurance Premium Taxes and Fees Return (Form DR-908 ).

There are several credits available against the insurance premium tax. These include credits for paying salaries in Florida, credits for paying other taxes or assessments, and credits for making certain types of investments in Florida. See the Department's Insurance Premium Tax Incentives webpage for a comprehensive list. The Insurance Premium Taxes and Fees Return (Form DR-908 ) and the instructions (Form DR-908N ) also provide a list and explanation of available credits each year.

Municipalities and special fire control districts may elect to impose an excise tax on insurance premiums to help fund the pensions of police officers and firefighters. These excise taxes are reported on Schedules XII and XIII of the Insurance Premium Taxes and Fees Return (Form DR-908 ).

Administration

• Florida Department of Management Services, Division of Retirement, is responsible for the administration of the pension funds.
• Florida Department of Revenue is responsible for processing tax returns and payments, and reporting amounts received for participating municipalities and special fire control districts to the Division of Retirement.
• Florida Department of Financial Services performs market conduct exams.

Electronic Address/Jurisdiction Database

The Florida Department of Revenue maintains an electronic address/jurisdiction database that assigns jurisdictions to street addresses in Florida. Participating municipalities and fire districts are responsible for updating the jurisdictional information. Insurers use the database to assign policies and premiums to local taxing jurisdictions. Insurers use Schedules XII and XIII of the Insurance Premium Taxes and Fees Return (Form DR-908) to report the premiums and tax due for each participating local taxing jurisdiction.

You can use the database to download multiple addresses or look up a single address.

If you have questions about the electronic address/jurisdiction database, contact:

Florida Department of Revenue
Local Government Unit
PO Box 5885
Tallahassee FL 32314-5885
Telephone: 850-717-6630
Email: Local-Govt-Unit@floridarevenue.com

The Department’s Local Government Unit maintains a list of contacts who may submit updates to addresses in the electronic address/jurisdiction database. Participating municipalities and fire districts can contact the Local Government Unit to check the current list of contacts for their jurisdiction or to notify the Local Government Unit of any updates needed.

Distribution of Funds

After receiving funds from the Florida Department of Revenue, the Florida Department of Management Services, Division of Retirement, Municipal Police Officers' and Firefighters' Retirement Trust Funds Office manages and distributes the retirement trust funds to the local taxing jurisdictions.

When to Notify the Department

You must notify the Florida Department of Revenue, if you:

• Change your business name;
• Change your mailing address;
• Change your location address within the same county;
• Close or sell your business; or
• Your business becomes active and you will sell or rent taxable property or services.

The quickest way to notify the Department of these changes is to update your account online.

Insurance premium tax is reported by insurers, including authorized domestic, foreign, and alien insurers, who enter into insurance or annuity contracts in Florida, using an Insurance Premium Taxes and Fees Return (Form DR-908 ). Instructions (Form DR-908N ) are available. Form DR-908 is due yearly by March 1. Insurers must also pay quarterly installments using the Insurance Premium Installment Payment and Instructions (Form DR-907 ). Installments are due on April 15, June 15, and October 15 of each year. Final payment of tax due for the year must be made when the tax return (Form DR-908) is filed. You can file and pay insurance premium tax electronically using the Department's free and secure eFile and Pay webpage.

Taxpayers who paid $5,000 or more in insurance premium tax during the most recent state fiscal year (July 1 - June 30) are required to file and pay electronically during the next calendar year.

When you electronically pay only or you electronically file and pay at the same time, you must initiate your electronic payment and receive a confirmation number no later than 5:00 p.m., ET, on the business day prior to the installment or return due date to avoid penalty and interest. For a list of the electronic payment deadlines, visit the Department's Forms and Publications webpage and select the current year Florida eServices Calendar of Electronic Payment Deadlines (Form DR-659) under the eServices section.

When electronically filing insurance premium tax you can upload data files for Schedules XII and XIII (Firefighters’ and Police Officers’ Retirement Trust Funds). It also offers automatic calculations and automatic entry of data appearing in more than one schedule.

If you file your return or pay tax late, a penalty of 10% of any unpaid tax is charged. If you do not report and timely pay an installment payment, or you underestimate the installment payment due, a 10% penalty is charged. A floating rate of interest applies to underpayments and late payments of tax. Interest rates can be found on the Department's Tax and Interest Rates webpage.

This list, although not all-inclusive, provides many of the statutes that relate to the insurance premium taxes and fees.

• Section 175.101, F.S. – State excise tax on property insurance premiums authorized; procedure.
• Sections 175.1015 and 185.085, F.S. – Determination of local premium tax situs.
• Section 175.141 and 185.12, F.S. – Payment of excise tax credit on similar state excise or license tax.
• Section 185.08, F.S. – State excise tax on casualty insurance premiums authorized; procedure.
• Section 252.372 F. S. – Imposition and collection of surcharge.
• Section 440.51, F.S. – Expenses of administration.
• Section 624.4621, F.S. – Group self-insurance funds.
• Section 624.46226, F.S. – Public housing authorities self-insurance funds; exemption for taxation and assessments.
• Section 624.4625, F.S. – Corporation not for profit self-insurance funds.
• Section 624.475, F.S. – Tax on premiums, contributions, and assessments.
• Section 624.501, F.S. – Filing, license, appointment, and miscellaneous fees.
• Section 624.509, F.S. – Premium tax; rate and computation.
• Section 624.5091, F.S. – Retaliatory provision, insurers.
• Section 624.5092, F.S. – Administration of taxes; payments.
• Section 624.510, F.S. – Tax on wet marine and transportation insurance.
• Section 624.5105, F.S. – Community contribution tax credit; authorization; limitations; eligibility and application requirements; administration; definitions; expiration.
• Section 624.51055, F.S. – Credit for contributions to eligible nonprofit scholarship-funding organizations.
• Section 624.51056, F.S. – Credit for contributions to the New Worlds Reading Initiative.
• Section 624.51057, F.S. – Credit for contributions to eligible charitable organizations.
• Section 624.51058, F.S. – Credit for contributions to the Live Local Program.
• Section 624.51057, F.S. – Child care tax credits.
• Section 624.5108, F.S. – Property insurance discount to policyholders; insurance premium deduction; insurer credit for deductions.
• Section 624.515, F.S. – State Fire Marshal regulatory assessment and surcharge; levy and amount.
• Section 627.357, F.S. – Medical malpractice self-insurance.
• Section 628.6015, F.S. – Tax on premiums, contributions, and assessments of assessable mutual insurers.
• Section 636.066, F.S. – Taxes imposed.