AGENDA ITEM REPORT
TITLE:
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AN ORDINANCE AMENDING CHAPTER 18, “TAXATION,” ARTICLE IV, “INSURANCE PREMIUM TAXES,” BY REPEALING IT IN ITS ENTIRETY IN ORDER TO BE CONSISTENT WITH STATE LAW. (SECOND READING)(PUBLIC HEARING)
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BACKGROUND:
This item was approved on First Reading at the January 12, 2017, Commission Meeting.
The City Commission established an Ordinance that imposed taxes on insurance providers measured by premiums, income, and/or volume of transactions carried out by an insurance carrier and its agents in 1980 by way of enacting Article IV, “Insurance Premium Taxes,” which is in conflict with recent changes to Section 624.520, Florida Statutes. Specifically, Florida law and Sections 18-22, “Business tax receipt required; unlawful operation, penalties,” and 18-37, “Schedule,” of the City’s Code of Ordinances authorizes the City to impose a flat rate on insurance carriers based on their business activity as a whole in the City of Coconut Creek, but does not authorize a premium tax.
DISCUSSION:
The City is committed to updating its Code of Ordinances to comport with changes to Florida law. Staff has determined that this amendment is necessary in order to comply with current State laws regarding taxation of insurance companies doing business in the City.
RECOMMENDATION:
Staff recommends approval of this Ordinance.
FISCAL IMPACT: N/A