1990-11
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AGREEMENT
.90 - 011
STATE OF FLORIDA
COUNTY OF
LAKE
. 13th f February
THIS AGREEMENT, made and entered Into the day 0 . '
A,D, 1990 , between the F LOR IDA LEAGUE OF CITIES, INC., a. corpora~ion not for profl~, of "
the State of Florida, with its principal office in the City of Tallahassee, Florida, hereinafter called the League,
and the City of clermont , a municipal corporation of the Sta~e of
Florida, hereinafter called the "City;"
WITN ESSETH: That for the consideration hereinafter set forth, the League and City agree that:
1. The League will make the necessary investigations and collect unpaid, escaped and delinquent
privilege or occupational license taxes from corporations, firms or associations transacting any
insurance business in the City.
2. The City shall not incur any expense or liability in connection with such investigation and
collection except as hereina~ter set forth.
3. The League, at its expense, will write all necessary letters and assume all other expenses incurred
in the collection of said license taxes.
4. Only such corporations, firms or associations obligated to pay such license taxes under State
Law or under any City Ordinance of the City shall be approached or investigated.
5. The League shall retain 50% of the amount collected for effecting the collection of such
delinquent and escaped privilege, or license, taxes and the balance of 50% of the gross amount
recovered shall be forwarded to the City periodically by statements to said City. The League
shall receive no commission or compensation for amounts collected in subsequent years on
voluntary payments or payments received from billings by the City from companies from
which the League has effected collection under this Agreement.
6, During the term of this Agre£'mpnt th€' f'.ity shall nolif-; the League of any payments 01
compromise settlements received by the City, of such escaped and delinquent license taxes
due from insurance corporations, firms or associations. If any license taxes collected under
this Agreement are paid directly to the City, the City shall remit to the League the commis-
sion due it under this Agreement, or if sums due are forwarded to the League in the name of
the City, the league shall deduct its commission and remit to the City the sums due it under
this Agreement.
7. This Agreement shall remain in full force and effect until terminated by either party upon
giving at least ninety (90) days notice in writing to the other party, and all collections re-
ceived during said ninety (90) day period shall be disbursed in accordance with the above
provisions of this Agreement.
IN WITNESS WHEREOF, the parties have hereunto caused their names to be signed and their seals to
be affixed, this the day and year first above written.
ATTES-T:
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FLORIDA LEAGUE OF CITIES, INC., a cor-
poration not for profit 7te of Florida
BY ~~oont
CITY OF CLERMONT
A Municipal
BY
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Florida League of Cities, Inc
201 West Park Avenue
Post Office Box 1757
Tallahassee, FL 32302-1757
Telephone (404) 255-0424
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fa FlORIDA IFAGUE Of Cß1f.S
Raymond C SIttig
Executive Director
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January 12, 1990
Mr. Wayne Saunders, city Manager
City of Clermont
P. O. Box 219
Clermont, FL 32711-0219
Re:
Collection of Past-Due Occupational License Fees
from Insurance Companies
Dear Mr. Saunders:
We are writing to acquaint you with a program of the Florida
League of cities in which your city is not currently a
participant, but from which your city may benefit. For many
years the League has assisted Florida cities in the collection
of past-due and escaped license fees from insurance companies.
Most Florida cities which require payment of an occupational
license fee from insurance companies are participating in this
program, resulting in additional revenue for these cities.
Enclosed is a copy of an excerpt from the Florida League of
Cities' Datagram of June 16, 1989 which lists funds paid to a
number of the participating cities. Since we aggressively seek
collections for any given city every other year, typically we
will have a year of substantial collections followed by a year
of residual collections, which is seen in the different amounts
disbursed.
If your city does re~ire insurance companies doing business
within the municipal llmits to pay an occupational license tax,
your city may substantially benefit from participation in this
program. Since many insurance companies do business in Florida
through itinerant or traveling agents or representatives, or
through agents or representatives with offices in nearby
communities, it is very difficult for a municipality to
determine which companies are doing business within the city.
Your city may enter into an agreement with the Florida League
of cities for the collection of escaped or delin~ent insurance
company occupational license fees. The Florlda League of
cities performs research based upon information from your
city's records and from State records in an effort to determine
which insurance companies are doing business within your city
without paying the tax. Where companies have not paid the tax
directly to your city on or before the statutory deadline, the
League then endeavors to collect these escaped license taxes.
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January 12, 1990
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The League ~erforms the research, makes claims, follows up with
the compan1es, and handles all collections and attendant
paperwork without any direct cost to the city. To pay for the
program, the League deducts a percentage of the otherwise
escaped license taxes, with the balance being distributed to
cities on an annual basis. The remittance for the amount due
will be accompanied by a statement showing the names of the
companies from which collections have been made. These
companies can then be placed on your records for future
collections.
Enclosed are two copies of the agreement executed by cities in
the program with the Florida League of cities. If you would
like for the League to conduct this work on behalf of your
city, please have the enclosed agreements executed and returned
to our office, along with a copy of your license ordinance. We
will have the agreements executed on the part of the League and
return one copy to you for your file.
If you, or any council member or official have any questions,
please do not hesitate to call.
We very much appreciate your attention to this matter and we
look forward to serving your city in the program.
Sincerely,
~ :~U~ITIES
RAYMOND:C. SITTIG ð
Executive Director
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Enclosures