Instructions For Form Dr-908n - Florida Insurance Premium Taxes And Fees Return - 2018 Page 13
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13Florida Department of Revenue Form DR-908 Instructions
DR-908N
R. 01/18
Page 13
Add Lines A and B to determine the total surcharge due. Add
1998 assessment. Per s. 631.72(3), F.S., a $9,000 payment
this amount to the total payment due from Schedule XVII and
is due to the Department of Revenue in 2005 from that
enter the result on Page 1, Line 10.
refund ($30,000 X .05 X 6 years). The $9,000 that is due to
the Department of Revenue in 2005 is a repayment of the
FLAHIGA credits that the insurer had already claimed in tax
Schedule XVII
years 1999 through 2004 against its insurance premium tax
Payment Due from Florida Life and Health Insurance
or corporate income tax for the $30,000 that was refunded
Guaranty Association (FLAHIGA) Refund
by FLAHIGA. For tax years 2005 and thereafter, ABC should
Subsection 631.72(3), F.S., provides that any sums acquired
only use a payment of $270,000 to FLAHIGA for its 1998
by refund pursuant to s. 631.718(6), F.S., from the association
assessment when computing its FLAHIGA credit.
(FLAHIGA) which have until now been written off by
From the examples above, the total amount that ABC is
contributing insurers and offset against insurance premium
required to pay under s. 631.72(3), F.S., to the Department of
or corporate income taxes as provided in subsection (1) and
Revenue in 2005 is:
which are not needed for purposes of this part shall be paid
by the insurer to the Department of Revenue for deposit with
$40,000 (1995 FLAHIGA refund) X .001 X 8 years = $320.00
the Chief Financial Officer to the credit of the General Revenue
$30,000 (1998 FLAHIGA refund) X .05 X 6 years = $9,000.00
Fund.
TOTAL DUE
= $9,320.00
When FLAHIGA refunds money to an insurer from a previous
assessment that was paid by the insurer, and the insurer had
•
The amount of payment due from FLAHIGA refunds
claimed credit or partial credit against its insurance premium
should be based on the actual FLAHIGA credits taken
tax or corporate income tax for that previous payment to
by the insurer against its insurance premium tax or
FLAHIGA, the insurer is required to pay part of that refund to
corporate income tax that were the result of the previous
the Department of Revenue.
corresponding FLAHIGA assessment(s). If an insurer
did not claim a FLAHIGA credit based upon the previous
Line 1. Total Payment Due from FLAHIGA Refund
corresponding FLAHIGA assessment(s), no payment is
Enter any payment due as a result of FLAHIGA assessments
required.
claimed as credits against Florida insurance premium tax
(Form DR-908, Schedule VII) or Florida corporate income tax
•
The amount of the payment due from FLAHIGA refunds
(Florida Form F-1120, Schedule V) subsequently refunded
is not considered when determining whether the proper
by FLAHIGA in calendar year 2017. If no refund was
installments of tax were paid for the tax year.
received from FLAHIGA during the tax year, the amount on
•
The amount of the payment due from FLAHIGA refunds
Schedule XVII, Line 1, should be zero. Add this amount to
is not included in the computation of the 27 percent (.27)
the total surcharge from Schedule XVI and enter the result on
exception for installment payments in the following tax
Page 1, Line 10.
year.
Example .001 Rate
Like the FLAHIGA assessments, the FLAHIGA refund and the
ABC Insurance Company paid a $200,000 Class B FLAHIGA
payment due from the FLAHIGA refund may not be included in
assessment in 1995. On its 1997 – 2004 insurance premium
the retaliatory tax computation.
tax returns, ABC claimed FLAHIGA credits of $200 ($200,000
X .001) each year for its 1995 payment to FLAHIGA. The total
FLAHIGA credit taken by ABC, based on the 1995 FLAHIGA
assessment, was $1,600 ($200 for 8 years). In 2005 FLAHIGA
issued ABC a refund of $40,000 from the 1995 assessment.
Per s. 631.72(3) F.S., a $320 payment is due the Department
of Revenue in 2005 from that refund ($40,000 X .001 X 8
years). The $320 that is due to the Department of Revenue in
2005 is a repayment of the FLAHIGA credits that the insurer
had already claimed in tax years 1997 through 2004 against
its insurance premium tax or corporate income tax for the
$40,000 that was refunded by FLAHIGA. For tax years 2005
and thereafter, ABC should only use a payment of $160,000
to FLAHIGA for its 1995 assessment when computing its
FLAHIGA credit.
Example .05 Rate
ABC Insurance Company paid a $300,000 Class B FLAHIGA
assessment in 1998. On its 1999 – 2004 insurance premium
tax returns, ABC claimed FLAHIGA credits of $15,000
($300,000 X .05) each year for its 1998 payment to FLAHIGA.
The total FLAHIGA credit taken by ABC, based on the 1998
FLAHIGA assessment, was $90,000 ($15,000 for 6 years). In
2005, FLAHIGA issued ABC a refund of $30,000 from the
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