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scottwmsb

USA
29 Posts

Posted - 03/15/2004 :  18:01:30  Show Profile
Got a question for those of you who have gone through the most recent recertification for Flood. I heard from a client that NFIP now wants estimates to print off with the dollar amount of tax listed with the line item on the estimate report. That would mean tax would not be placed at the end of the estimate anymore but would have to show on a line item by line item basis. Can anybody confirm of refute this? Thanks.

katadj

USA
315 Posts

Posted - 03/15/2004 :  19:37:40  Show Profile
That is exactly what was said. They do not pay permits and fees nor sales tax. So we have to now calculate the amount of sales tax on a line item and price it accordingly.
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KileAnderson

USA
875 Posts

Posted - 03/15/2004 :  20:29:40  Show Profile
Does the flood policy actually say it doesn't pay for sales tax? How long has that been the case? I've included material sales tax on every flood estimate I've ever written. How would printing the sales tax for every line item be of any assistance to the adjuster or the reinspector? Wouldn't it just be easier to have a line item for sales tax at the end of the estimate and then subtract it from the total? It sounds like more government red tape. Work for the sake of work. It's like the Army is suddenly running the NFIP.
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Gale

USA
231 Posts

Posted - 03/16/2004 :  00:14:06  Show Profile
I attended the full day NFIP class at NACA in Jan and I did not hear this subject mentioned by the instructor or any adjuster. I bet if you will go to the top and ask your question you will get a strange look and NO for an answer from my experience concerning a similar rumor that was floating around you could not print out the remove and replace on two seperate lines a couple years ago. After Mrs. Dole gets through with NFIP issues in the news it will be better perhaps.
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Russ

USA
75 Posts

Posted - 03/16/2004 :  07:26:20  Show Profile
Most Carriers will require an Adjuster to add sales tax to each line item for flood claims. USAA wants sales tax shown on the estimate.All the Flood GA's will tell you NOT to show sales tax on the estimate. The WYO's call the shots on how we write Flood estimates.
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Gale

USA
231 Posts

Posted - 03/16/2004 :  09:11:59  Show Profile
Russ that is what I learned from the head guy. He said while NFIP did not have a hard and fast way how to write up an estimate but that often the WYO]s did? The other golden rule, "He who has the gold makes the rules" :)
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ChuckDeaton

USA
373 Posts

Posted - 03/16/2004 :  09:33:02  Show Profile
The correct handling of sale tax requires detailed research into the tax structure in the city, county and state where the claim is located and contributes to the proper handling of a claim. Sales taxes are composed of city sales taxes, county sales taxes and state sales taxes and tax rates vary, by political entity, according the amount of the purchase, the tax status of the owner of real property and the type of business personal property. Sales taxes on residential losses will vary by city county and state. Sales taxes on non reidential losses will have to be determined and will be influenced by the type of property and location.

Sales taxes are also differentiated by labor and material.

It is important to know if the repair person is a licensed contractor and whether or not the repair person has a sales tax license. When a properly licensed general contactor is involved it customary for material to move thru the supply pipeline untaxed until the job is invoiced. Any sales tax on labor is also job invoiced. Labor is subject to sales tax according to law. However, unlicensed repair persons, with out a sales tax license, will buy material or the insured will provide the material and pay the retail sales tax. The labor may not be properly taxed.

A call to the State Revenue office will tell you if the contractor has a sales tax license and is is remitting sales tax to the state. The same call will provide information as to what catagories of labor are taxable.

An adjuster will check to see if the job is double taxed. Materials taxed once, at retail, should not be taxed a second time on a job invoice. The paid tax should not be considered a part of the material cost and taxed a second time.
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trader

USA
236 Posts

Posted - 03/16/2004 :  10:10:31  Show Profile
Chuck you lost 90% of the roof climbers in your first sentance... "detailed research"," correct handling" a great post for the segment who will learn from your treatise.
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Stormdame

7 Posts

Posted - 04/14/2004 :  10:37:58  Show Profile
Have heard said by NFIP GA, "tax is included is the price allowed." All claims have a right to supplement and if what is spent to do repairs includes taxes goes over the original assessment I have never seen any carrier refuse to make payment on the supplement. It seems that NFIP is attempting to put dollars out before work is done. Remember, our tax dollars support this insurance.

NFIP is not always dealt with as other "state" regulated insurances. I have found that getting directives from carriers in writing is well worth the time. If you have directives in writing from carriers and you will save yourself heaps of trouble should NFIP call you.

Remember, we are not working NFIP claims direct when the claims are issued to you by an adjusting service. You answer to the adjusting service, they answer to the carrier and the carrier answers to NFIP. The good old rule of "CYA" is something to always keep in front of your work ethics when you do not agree with the directions of your manager, the claims servicing co., and/or carrier.


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katadj

USA
315 Posts

Posted - 04/14/2004 :  13:20:05  Show Profile
Unfortunately or rather fortunately, our tax dollars do NOT support the NFIP program.

It is entirely self-sustaining, and the only program in the Federal Government that is so.

The program exists on the premium dollars collected, and has rarely ever fallen into the red. When it has, it borrows from the treasury and repays the loan in a timely manner
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Gale

USA
231 Posts

Posted - 04/14/2004 :  20:44:24  Show Profile
Maybe we could hire them to run the country if that is the case.
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Reconstruction Man

124 Posts

Posted - 04/15/2004 :  11:32:51  Show Profile
Chuck sez,

"It is important to know if the repair person is a licensed contractor and whether or not the repair person has a sales tax license. When a properly licensed general contactor is involved it customary for material to move thru the supply pipeline untaxed until the job is invoiced."

Question:

How do you feel about properly registered,
"Sole proprietorship" based business models that pay sales, labor, service, etc. taxes, as they go?

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JimF

USA
1014 Posts

Posted - 04/15/2004 :  12:30:01  Show Profile
What does your question have to do with the thread topic of the National Flood Insurance Program?

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fivedaily

USA
258 Posts

Posted - 04/15/2004 :  13:03:51  Show Profile
The topic is on the NFIP's use of sales tax and how it is applied on the estimate. I think, despite my shock, that Reconman might have a valid, on topic post. If he degenerates into his usual rantings though about conspiracies and bad faith, I'll step in. For now though I think he is onpoint close enough to count. Anyone care to reply to his question or are you going to ignore him this time?

Jennifer, moderator
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alanporco

USA
112 Posts

Posted - 04/15/2004 :  13:32:01  Show Profile
ReconMan sez: "Question:

How do you feel about properly registered,
'Sole proprietorship' based business models that pay sales, labor, service, etc. taxes, as they go?"

I feel all warm and fuzzy.
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Todd Summers

USA
99 Posts

Posted - 04/15/2004 :  14:55:57  Show Profile
Reply? Nope. Not gonna do it. After all how can I reply, when I no longer even bother reading his posts. The few that I have read have already cost me too much time and, you know time = $.
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