Florida Tax Watch reports lower insurance taxes
To the editor:
On Jan. 1, 2015, Floridians will experience lower insurance taxes for the first time in nearly a decade.
Since the devastating 2004-05 hurricane season, Floridians have been penalized with fees to help pay off damage from strong storms. All insurance policies in the state of Florida, including home insurance, auto insurance and business insurance, will no longer be forced to pay the Florida Catastrophe Fund Emergency Assessment, known as Florida’s hurricane tax.
Governor Scott and the State Board of Administration should be applauded for taking the right steps to help end this costly assessment a full year ahead of schedule. Eliminating this tax will allow consumers to save more of their hard-earned dollars and eliminate an impediment to Florida job growth and business development.
Florida has been fortunate to avoid a direct hurricane hit for nearly a decade, but it’s clear after 10 years of paying costly assessments that Florida residents, homeowners and businesses are very vulnerable to a future storm. To prevent Florida’s policyholders from paying future hurricane taxes, the 2015 Legislature must act to reform the Florida Catastrophe Fund. Florida policymakers should take steps to ensure that taxpayers don’t need to worry about rising taxes while preparing to protect their homes, loved ones and communities during hurricane season.
Florida TaxWatch, the independent, nonpartisan, nonprofit taxpayer research institute and government watchdog serving Florida for 35 years, has produced nonpartisan, independent research that highlights the risk that all taxpayers and policyholders in Florida are exposed to because of the Florida Catastrophe Fund’s potential liabilities. Even as the Fund is now solvent, one or two strong storms could quickly result in billions of dollars in unfunded liabilities for Florida and its taxpayers.
Dominic M. Calabro
President and CEO
Florida TaxWatch