FL Senate’s Tax Package Includes Measures to Alleviate Burden of Property Insurance on Homeowners

FL Senate's Tax Package Includes Measures to Alleviate Burden of Property Insurance on Homeowners

In Lincoln Park, New Jersey, on September 2, 2021, West Williams Street is inundated by river water. Gov. Phil Murphy of New Jersey issued a state of emergency as Tropical Storm Ida struck the Northeast with record-breaking rain and tornadoes, causing flooding and power disruptions across the state.

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Democrats have criticized Republican legislative priorities for the 2024 session, claiming that not enough has been done to address Florida’s property insurance catastrophe.

However, a press release states that the $900 million tax relief measure (SB 7404) released on Monday by the GOP-controlled Senate Finance and Tax Committee includes a one-year exemption for policyholders of residential property insurance from taxes, fees, and assessments.

“To a policy providing property insurance on a residential dwelling with a coverage amount of $750,000 or less, which provides coverage for twelve months with an effective date not before July 1, 2024, and no later than June 30, 2025,” according to a staff analysis on the proposal.

The measure mandates that the insurer issuing the insurance must give the policyholder a credit in the amount of 1.75 percent of the net premium that is owed. The insurance policy’s declarations page has to include a separate statement of the credit amount.

The research also shows that the proposal would save flood insurance policies issued or renewed after July from premium taxes for one year.

FL Senate's Tax Package Includes Measures to Alleviate Burden of Property Insurance on Homeowners (1)
Orlando Democratic Representative Anna Eskamani sent a text message to the Phoenix saying, “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.” “If we are going to help Floridians get through this insurance crisis, we have to do more.”

She continued, “That being said, I am happy to see the Senate include even these small tax breaks for Floridians.”
The cost of property insurance is a “major affordability problem for many Florida homeowners,” according to Senate President Kathleen Passidomo, who made this statement on Monday.

“As our insurance market strengthens, I think every little bit helps, and lowering the taxes associated with flood insurance and property insurance premiums is important for families who are trying to make ends meet,” the spokesperson stated in a press statement.

In December, Governor DeSantis proposed a budget that included a one-year exemption from taxes, fees, and assessments for homeowners insurance policies. According to his administration, this would result in $409 million in tax relief and lower average insurance premiums by up to 6%. In addition, DeSantis demanded a permanent exemption from floor insurance plans rather than the Senate’s proposed one-year proposal.

The News Service of Florida reports that the House tax plan, which was unveiled last week, does not exempt property insurance policies from taxes, fees, or assessments. Furthermore, it excludes all taxes from flood insurance premiums.

Tuesday at 1:30 p.m., the Senate Finance and Tax Committee will hold its first hearing on the Senate tax plan.

The post Property insurance relief is included in the Senate tax measure as Florida residents face affordability challenges that appeared first on Florida Phoenix.

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