[StBernard] Panel backs refund on insurance fees

[Westley Annis]

Panel backs refund on insurance fees
A Senate committee advanced legislation Thursday that would give state
taxpayers a refund on the increase in their insurance premiums since the
hurricanes.

At least one member of the Senate Committee on Revenue and Fiscal Affairs
questioned the price tag on Senate Bill 242. The legislation would reduce
state government revenue by $385 million the first year it became law.

Sen. Robert Adley, D-Benton, advised the bill's sponsor, Sen. Walter Boasso,
D-Arabi, to focus instead on the Oct. 20 governor's race. Boasso is running
for governor.

"Hopefully, you'll find your way to a better office where you can get this
done. I just don't see how you can do it," Adley said, referring to the
bill's cost.

The committee advanced the legislation anyway. It now moves to the full
Senate.

The bill would offer homeowners and businesses a tax credit on the
difference between their current year insurance premiums and their 2005
premiums. For many, insurance premiums soared after hurricanes Katrina and
Rita.

The value of the credit would decrease by 10 percent every year, phasing out
entirely after 2016.
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Editor's Note:  Here is a digest of the bill, provided by the Senate staff.

DIGEST
Proposed law provides for a refundable credit against any Louisiana income
tax due in a taxable year for the amount of difference between a person's
current qualifying insurance premium and the person's qualifying insurance
premium for 2005, in the following percentages:

Year Percentage
2007 100%
2008 90%
2009 80%
2010 70%
2011 60%
2012 50%
2013 40%
2014 30%
2015 20%
2016 10%
Proposed law defines the term "person" to mean natural and juridical
persons.
Proposed law defines the term "qualifying insurance premium" to mean all
insurance premiums
paid for insurance policies which cover any type of immovable property.
Proposed law provides that no credit shall be given for premiums paid after
January 1, 2016.
Effective August 15, 2007, and applies for all taxable periods beginning on
or after Jan. 1, 2007.
(Adds R.S. 47:6026)