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Portions of Certain Bail Bond and Title Insurance Premiums Not Subject to Insurance Premium Tax in Florida Beginning in 2015

On July 1, 2014, the Florida Department of Revenue (the “DOR”), in TIP No: 14B8-02, announced changes, effective January 1, 2015, to applications to insurance premium tax to bail bond premiums and title insurance premiums.

1) Bail Bond Policies or Contracts Written on or After January 1, 2015: The portion of direct written bail bond premiums retained by licensed bail bond agents or licensed managed general agents will no longer be subject to insurance premium tax.  But note that the portion of direct written bail bond premiums not retained by agents or managing general agents will remain taxable at 1.75%.

2) Title Insurance Policies Written on or After January 1, 2015 (through at least December 31, 2017): The portion of title insurance premiums retained by title insurance agents or title insurance agencies will no longer be subject to insurance premium tax.  But note that the portion of title insurance premiums not retained by agents or agencies will remain taxable at 1.75%.

 

See “Florida DOR Announces Changes to Taxation of Bail Bond And Title Insurance Premiums,” 2014 STT 130-17, July 8, 2014.

 

Want to further discuss these issues?  Contact me at 954-944-3929 or nrumbak@rumbaklaw.com.

*This document contains legal information, but does not contain legal advice.

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