Legislation awaiting the signature of Louisiana’s governor would significantly lower the amount of rebate property insurance policyholders would receive for assessments to cover the debts of the state’s property insurer of last resort.
House Bill 25 was passed by Louisiana lawmakers during a special session aimed at raising more money for next year’s budget.
The measure would lessen the tax break for homeowners and renters who are charged an assessment on their property insurance to cover debts of the state-run Louisiana Citizens Property Insurance Corp.
Currently, the rebate is 72 percent of the Citizens assessment charged on property insurance bills. That drops to 25 percent, retroactive to Jan. 1.
Legislative estimates indicate the bill would raise $17 million for the financial year that begins July 1 and $139.6 million over five years.
The Citizens assessments began after the insurer was hit with massive losses from Hurricane Katrina in 2005. The rebate amount was also reduced by legislation passed in 2015.
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