FAQs
How does the new 4.94% tax rate affect endorsements and cancellations on policies effective prior to July 1, 2020?
Title :
How does the new 4.94% tax rate affect endorsements and cancellations on policies effective prior to July 1, 2020?
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All new and renewal policies effective prior to July 1, 2020, and any subsequent endorsements on those policies will still be taxed at the original rate of 5%.
For example, the tax rate for a policy effective January 1, 2020 is 5% of the gross premium. An additional premium endorsement effective July 1, 2020 would also be taxed at 5%. If the policy is cancelled effective August 1, 2020, the tax credit is 5% of the returned premium.
When these transactions are reported to FSLSO via SLIP or XML Batch, the system will calculate the appropriate taxes based on the effective date of the new or renewal policy.The tax rate reduction does not apply to independently procured coverage (IPC). IPC policies are subject to a premium tax at the rate of 5% pursuant to F.S. 626.938.
Categories :
- FAQ Taxes, etc.
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