SB 378-Relating to Taxation
On Tuesday, March 21st, SB 378, by Senator Anitere Flores (R-Miami) was heard by the Senate Appropriations Subcommittee on Finance and Tax, and passed by a vote of 4 yeas to 0 nays. AIF’s Senior Vice President of State and Federal Affairs, Brewster Bevis, spoke in opposition to this bill.

This legislation aims to repeal the insurance premium tax credit, which would result in a nearly $300 million tax increase on Florida’s insurance industry. Florida is one of only a few states that have two separate taxes for insurers – a corporate income tax paid by all businesses and a second, punitive tax on the insurance premiums paid by Floridians. Therefore, this premium tax credit was created in 1987 to lessen the burden on insurers while also allowing them to reinvest these funds back into their business. Repealing this 30-year insurance salary tax credit removes the mechanism that helps keep insurance rates for everyday Floridians as low as possible.

During this meeting, an amendment offered by Senator Kelli Stargel (R-Lakeland) would swap the insurance salary tax credit for a reduction in the Communications Services Tax (CST) and business rent tax. While AIF supports the goal of reducing both the CST and the business rent tax, AIF opposes this method of accomplishing that goal.

SB 378 will go to the Senate Committee on Appropriations.

AIF OPPOSES legislation that will cause nearly a $300 million tax increase on Florida’s insurance industry, resulting in an increase in insurance premiums for Florida’s business community.

Please see the below press release from AIF’s President & CEO, Tom Feeney, regarding SB 378:

AIF: “Keep Floridians Working & Florida-based Companies Giving”

Tallahassee, Fla. – The Associated Industries of Florida (AIF) today released the following statement on behalf of its President & CEO Tom Feeney regarding opposition to Senate Bill 378, by Senate President Pro Tempore Anitere Flores, relating to Taxation.

“AIF supports reducing the business rent tax. However, we cannot support this tax break on the back of creating what would be the largest Florida tax hike in many years if the insurance premium tax salary credit is repealed.

“Florida is one of only a few states that have two separate taxes for insurers – a corporate income tax paid by all businesses and a second, punitive tax on the insurance premiums paid by Floridians.  The removal of the working tax credit would make premium tax collections from insurers in Florida increase by $297.3 million.

“Florida simply cannot risk the future creation of new high-paying insurance jobs or the loss of such existing jobs.  We need a predictable, business-friendly environment that includes reasonable incentives for corporations large and small to do business in Florida.  That is what keeps Floridians working and Florida-based companies giving.”

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