Cypen & Cypen  
Home Attorney Profiles Clients Resource Links Newsletters navigation
    
777 Arthur Godfrey Road
Suite 320
Miami Beach, Florida 33140

Telephone 305.532.3200
Telecopier 305.535.0050
info@cypen.com

Click here for a
free subscription
to our newsletter

Miami

Cypen & Cypen
SPECIAL SUPPLEMENT
for
AUGUST 13, 2007

Stephen H. Cypen, Esq., Editor

Never Forget - September 11, 2001

1. FLORIDA PREMIUM TAX DISTRIBUTION AMOUNTS RELEASED:

Here is the information Florida municipal firefighters and police officers have been anxiously awaiting. The Municipal Police Officers’ and Firefighters’ Retirement Trust Funds Office has released the amounts available to be distributed to firefighter and police officer pension plans. The total distribution for firefighters is $60,500,263.04 (up from $53,459,917.77) and for police officers, $65,618,736.18 (up from $64,325,956.14). Once again, our client City of Miami leads both packs: $5, 825,431.79 (fire) and $5,354,288.51 (police). Readers will be able to view the entire list at http://www.myflorida.com/frs/mpf Warrants have been requested, and the accounting office anticipates having checks back from the comptroller available to mail out by August 20, 2007. If your plan is not on the list, please contact the Municipal Police Officers’ and Firefighters’ Retirement Trust Funds Office and provide whatever information is needed for approval of your annual report. Of course, premium tax monies must be deposited to the fund immediately, and no later than five days after receipt. One other reminder: Section 185.085(6), Florida Statutes, requires a prorated distribution. Since there was a small increase this year, each city will receive at least the same amount as collected for calendar year 2004. Next year, however, will be the last year for this “adjustment.” Cities and pension boards should review the column entitled “Unmodified 2006 Distribution Amount,” so that necessary adjustments can be made to future budgets. As always, thanks to Keith, Trish, Melody, Martha and Julie.

2. PROPOSED RULE/SEPTEMBER 3, 2007 DATABASE DEADLINE:

The following e-mail from Trish Shoemaker is important. It refers to Notice of Proposed Rulemaking from the Department of Revenue. A hearing will be held on September 5, 2007 in Tallahassee. Proposed Rule 12B-8.0016(1)(a)1 states that “the database available for downloading does not include the information contained in the pending changes.” Proposed Rule 12B-8.0016(1)(b) states that “the approved pending address additions and approved pending address deletions are stored in separate files maintained by the Department in the next scheduled update of the database. These pending files include corrections or any errors discovered since the last update, as well as changes in addresses or jurisdictional boundaries based on information provided by local taxing jurisdictions and approved by the Department. These pending files contain the most recent local taxing jurisdictional assignment information. The individual address lookup feature searches the current database and the pension files and may reflect information that has not yet been incorporated into the database available for downloading and use by local taxing jurisdictions and insurers. Insurers may use the information contained in the address look-up feature to assign policies and premiums to the proper local taxing jurisdictions. In such cases, the individual address lookup page carries a statement notifying the viewer that it reflects a pending change to the database." Importantly, the Department does not have a program that allows insurers to download the pending address list; it is only available as an individual address lookup feature. This means that only the updates that are submitted by September 3, 2007 will be included in the downloadable address database used by insurers for reporting their calendar year 2008 premium taxes. Please make sure you are aware of the September 3, 2007 deadline for the Insurance Premium Tax database (and the Communications Service Tax database).

For cities, the Department will download the address changes submitted for the Communications Service Tax database, and for Fire Control Districts, address information updates must be submitted by the District to the Department in order for any updates to be made to the Insurance Premium Tax database. These address updates will be posted and made available for insurance companies to use in reporting 2008 premium taxes. Thus, it is important that updates be submitted to the Department by the deadline.

From: Shoemaker, Trish [mailto:Trish.Shoemaker@dms.myflorida.com]
Sent: Monday, August 13, 2007 10:21 AM
To: Alison Bieler; Stephen Cypen
Subject: FW: Scanned image from Local Retirement Konica

Good Morning!

Attached is a copy of the Proposed Rules from the Department of Revenue (DOR). The notice states that a Hearing will be held on September 5, 2007, at 10:00 a.m. in Room 118, Carlton Building, 501 S. Calhoun Street, Tallahassee, FL. If you have any questions concerning the proposed rules or the Hearing, please contact Robert DuCasse at DOR at (850) 922-4715.
Note that on page 1, paragraph (1)(a)1, states that "The database available for downloading does not include the information contained in the pending changes described in paragraph (b)." (Emphasis added).

On page 2, paragraph (b), states that, "...the approved pending address additions and approved pending address deletions are stored in separate files maintained by the Department in the next scheduled update of the database. These pending files include corrections or any errors discovered since the last update, as well as changes in addresses or jurisdictional boundaries based on information provided by local taxing jurisdictions and approved by the Department. These pending files contain the most recent local taxing jurisdictional assignment information. The individual address lookup feature searches the current database and the pension files and may reflect information that has not yet been incorporated into the database available for downloading and use by local taxing jurisdictions and insurers. Insurers may use the information contained in the address look-up feature to assign policies and premiums to the proper local taxing jurisdictions. In such cases, the individual address lookup page carries a statement notifying the viewer that it reflects a pending change to the database." (Emphasis added).

What is important to note is that currently DOR does not have a program that allows insurers to download the pending address list. It is only available as an individual address lookup feature. This means that only the updates that are submitted by September 3, 2007 will be included in the downloadable address database used by insurers for reporting their calendar year 2008 premium taxes. Any new cities/districts or updates/corrections to addresses that occur after September 3, 2007 will only be available on the individual lookup page. So when an insurance company reports its premium taxes for 2008 in March of 2009, they will be relying on address information provided on September 3, 2007. It is unlikely and would be very cumbersome for an insurance company to bother looking up individual addresses in the pending list to make sure that they were reporting correctly.

You may wish to discuss with DOR the need for a more user friendly method for insurance companies to use the pending address list. If they could download the pending list and run it against their policy information at the end of the year, then they could provide a more up to date and accurate allocation of the taxes when they file their returns in March.

Please make sure that your clients are aware of the September 3, 2007 deadline for both the Communications Service Tax (CST) and Insurance Premium Tax (IPT) databases. For cities, DOR will download the address changes submitted for the CST database, and for Fire Control Districts, address information updates must be submitted by the District to DOR in order for any updates to be made to the IPT database. These address updates will be posted and made available for insurance companies to use in reporting the 2008 premium taxes. So, it is very important that they get these update to DOR.

Thanks,
Trish


To view the proposed rules, go to http://dor.myflorida.com/dor/rules/12b-80016.html, then click on 5/15/07 next to the Work Shop Notice.


Copyright, 1996-2007, all rights reserved.

Items in this Newsletter may be excerpts or summaries of original or secondary source material, and may have been reorganized for clarity and brevity. This Newsletter is general in nature and is not intended to provide specific legal or other advice.


Site Directory:
Home // Attorney Profiles // Clients // Resource Links // Newsletters