Article
Courtesy of The Florida Phoenix
By Mitch Perry
Published February 27, 2024
Democrats have been critical of GOP legislative
priorities in the 2024 legislative session, saying they haven’t done enough
to address the property insurance crisis in Florida.
But on Monday, the GOP-controlled Senate Finance and Tax committee unveiled
a $900 million tax relief package (SB 7404) that includes a one-year
exemption on taxes, fees, and assessments for residential property insurance
policyholders, according to a news release.
A staff analysis on the proposal relates “to a policy providing property
insurance on a residential dwelling with a coverage amount of $750,000 or
less which provides coverage for a twelve month period with an effective
date not before July 1, 2024, and no later than June 30, 2025. The bill
requires an insurer issuing such a policy to provide a credit to the
policyholder equal to 1.75 percent of the net premium due. The amount of the
credit must be separately stated on the declarations page of the insurance
policy.”
The proposal also exempts flood insurance policies enacted or renewed after
July from premium taxes for one year, according to the analysis.
“A savings of about four percent is a low amount for Floridians who have
watched their property insurance premiums soar for these last years, more
than doubling under Ron DeSantis,” Orlando Democratic Rep. Anna Eskamani
told the Phoenix in a text message. “We need to do more if we are going to
truly help Floridians navigate this insurance crisis.”
“That said, I am glad to see the Senate include even these minimal tax
breaks for Floridians,” she added.
Senate President Kathleen Passidomo said Monday that the Legislature is
aware that the cost of property insurance is posing a “major affordability
problem for many Florida homeowners.”
“I believe every little bit helps, and reducing the taxes associated with
flood insurance and property insurance premiums is important for families
who are trying make ends meet as our insurance market strengthens,” she said
in a press release.
In his budget proposal announced in December, Gov. DeSantis called for a
one-year exemption on taxes, fees and assessments for home insurance
policies, saying that it would provide for $409 million in tax relief which
his office said would decrease the average insurance premium by up to 6%.
DeSantis also called for a permanent exemption on floor insurance policies,
as opposed to the one year plan the Senate is offering.
The House tax plan released last week does not include any exemptions on
taxes, fees and assessments on property insurance policies, according to the
News Service of Florida. It also doesn’t include any tax exemptions on flood
insurance policies.
The Senate tax plan will be heard for the first time on Tuesday afternoon in
the Senate Finance and Tax Committee, beginning at 1:30 p.m.
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