Legislators are still developing plans for a tax cut package, but it’s unclear whether one of the major pieces of Gov. Ron DeSantis’ recommended tax plan will make the cut.
House and Senate leaders both say they’re still considering the proposal but have also warned the tax cut bill will likely be smaller than the current year.
DeSantis pitched the idea of exempting homes with up to $750,000 worth of coverage from taxes, fees and assessments for one year as part of his budget recommendations to lawmakers. That part of the plan would save policyholders $409 million, and a permanent premium tax exemption on flood policies would save $22 million.
DeSantis touted the plan as a way to help homeowners save on insurance premiums, which have skyrocketed in recent years, but lawmakers have been lukewarm in their embrace of the idea.
“Frankly that’s a nice idea, it really doesn’t help that much in the narrative. It doesn’t, really, if you look at the overall number, it’s not a big number but I think it’s a statement the Governor is committed to reducing primarily homeowners’ rates in Florida,” Senate budget chief Doug Broxson, a Pensacola Republican, told reporters Wednesday.
Senate President Kathleen Passidomo, though, then added that it’s still under consideration.
“Obviously it’s something that we’re looking at. I support the concept. Every little bit helps,” said Passidomo, a Naples Republican.
In the House, Rep. Stan McClain, an Ocala Republican who chairs the House Ways and Means Committee, which writes the tax plan, also said the insurance tax cut could make it in the final bill.
His panel held a presentation Thursday on tax cut “concepts” the panel is considering. A reduction in the business rent tax, limitations on tourist development taxes and local option surtaxes and additional credits on corporate incomes taxes for businesses that hire disabled workers were all discussed, but DeSantis’ insurance tax cut plan wasn’t part of the presentation.
McClain said his panel’s tax cut bill will be released next week. The House plan will eventually pass off the floor but be the subject of negotiations with the Senate over the final tax cut plan.