WEST PALM BEACH, Fla. — Homeowners in Florida can anticipate savings on their insurance premiums starting in October, thanks to a one-year reduction in the tax on premiums recently signed into law by Governor Ron DeSantis.
The new law, signed earlier this week alongside several sales tax holidays, aims to alleviate the financial burden on policyholders by reducing the 1.75% tax applied to home and flood insurance policies.
“We’re trying to provide relief,” Governor DeSantis emphasized regarding the tax cut.
The average savings from this tax reduction had been estimated to be around $60 per policyholder.
Taking a closer look at specific policy examples, the potential savings become clearer. For instance, a homeowner with a $14,000 premium could expect to save $245, while someone with a $4,000 premium might save $70.
Although these savings may seem modest compared to substantial premium increases faced by many homeowners, state officials assure the public that lawmakers are working diligently to address these challenges.
“Every single year, these men and women leave their homes, they go to Tallahassee and they iron out solutions that make sense for the state,” remarked Chief Financial Officer Jimmy Patronis at a recent insurance roundtable in Clearwater.
Patronis also highlighted the $200 million allocated to the My Safe Florida Home program, which is set to restart on July 1.
However, not everyone believes these efforts are sufficient. Amy Bach, executive director of the nonprofit group United Policyholders, expressed skepticism about the legislature’s approach to insurance reform in Florida.
“I think that the legislature has done a lot of tinkering and I’m not sure we’re seeing great benefits come out of that,” Bach commented.
The insurance premium tax cut represents a significant step in providing financial relief to Florida homeowners, with tangible savings expected to take effect later this year.
