Florida Tax Watch Requires Renewed Tax Breaks for Dwelling Hardening Efforts

Florida Tax Watch, a nonprofit authorities watchdog in operation for 45 years, is urging state lawmakers to increase wind-mitigation tax breaks for owners scuffling with increased insurance coverage premiums.

The group this week posted an evaluation of the Florida property insurance coverage market and stated that current years’ legislative reforms are exhibiting promise in decreasing litigation and stabilizing the market – however extra work is required.

One of many few particular suggestions within the report requires extra home-hardening concerns. A sales-tax exemption on impact-resistant doorways and home windows expired on the finish of June, the report famous.

“State policymakers ought to contemplate extending this system or establishing an extended program to encourage house hardening amongst all owners,” the report stated. “Dwelling hardening helps forestall future injury, thereby limiting threat for insurers and, in flip, limiting the expansion of premiums,” the group famous.

The report stopped wanting calling for an growth of the extremely in style My Secure Florida Dwelling and My Secure Florida Condominium packages, which have been supplied with greater than $200 million in state funds to retrofit residences to make them extra proof against storms. A Florida State College insurance coverage professor has stated the packages are efficient and he has argued that rather more funding is required. Numerous different states have created comparable mitigation-grant packages.

The Tax Watch report additionally famous that with rising seas and an anticipated enhance in hurricanes and different storms, perils will solely develop in coming years.

“Sixty-four thousand residential properties— amounting to $26 billion in worth and contributing $350 million in annual property tax income—might be extremely weak to flooding by 2045,” the authors famous. “Elevated threat will enhance insurance coverage premiums. Florida should discover a method to set up long-term stability for the property insurance coverage market; in any other case, the excessive value of insurance coverage will drive many Floridians out of the state.”

Policymakers must also contemplate methods to cut back insurance coverage charges sooner. And new concepts could also be wanted to deal with the continued insurance coverage points in Florida, the report stated.

“Regardless that understanding the results of earlier laws will take time—and at present present some promise—policymakers ought to stay vigilant to new alternatives to additional improve the resiliency of the property insurance coverage market and tackle the important want to cut back already exorbitant premiums,” the report concluded.

Florida Tax Watch was established in 1979 and is funded by donations and personal grants. Dominic Calabro is president and CEO. The total report could be seen here.

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Florida