Florida Lawmaker Wants to End Insurance Company Tax Credit

A top Senate Republican wants to roll back fees now charged to Floridians to renew their driver’s license and car tags.

Sen. Joe Negron, R-Stuart and Senate budget chief, said he will unveil a bill this week that would wipe out an existing $220 million tax break for insurance companies. Negron wants to use the funds that result from the elimination of that tax break to cut in half some of the fees now charged to motorists.

State legislators hiked fees to renew car tags and licenses back in 2009 to help balance the state budget amid the recession. That year, initial vehicle registration fee more than doubled, going from $100 to $225. The cost of an initial driver’s license went up from $27 to $48 and a renewal increased from $20 to $48.

Negron estimates that the insurance industry receives about $220 million a year in incentive tax credits designed to encourage them to hire and keep employees in the state. The credit can be up to 15 percent of an employee’s salary.

Topics Carriers Legislation Florida