Department of Revenue Issues TIP on FIGA Assessments
The Florida Department of Revenue has issued TIP #16B8-02 advising of a change in Florida’s premium tax laws effective July 1, 2016. The TIP specifies that assessments levied by the Florida Insurance Guaranty Association will no longer be subject to the insurance premium tax. The TIP reflects changes to section 631.914, Florida Statutes, that were adopted in Chapter Law 2016-170 (SB 828) during the 2016 legislative session. The law change specifies that assessments are not part of premiums and are not a component of insurers’ rates.