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Tax break considered for seniors

By DAVID DeCAMP
Published October 11, 2006

DADE CITY - On a day when Pasco County approved a deal to fight for lower insurance rates, county commissioners also delved back into giving low-income seniors tax relief.

County Commissioner Steve Simon urged the county to double its $25,000 homestead exemption on property tax assessments for low-income seniors. He said 53 of Florida's 67 counties offer the double exemptions.

The commission directed the county staff to begin calculating the potential costs. Simon said it could be roughly $3-million a year and save $200 for a homeowner.

Simon suggested offering the relief to residents earning less than $25,000 a year. Simon, whose election opponent Michael Cox sat in the audience, said he had "no idea" so many other places had created the extra exemption while Pasco had not.

The commission did not take a formal vote, but informally agreed to study the idea.

The commission decided against a senior-oriented deduction in 2004 and rejected the idea three years earlier, fearing lost revenue.

But this year, residents have complained about high insurance bills, prompting not just Tuesday's tax discussion but the hiring of an outside lawyer and actuary to help win lower rates.

The commission agreed to spend $100,000 Tuesday on an outside attorney and actuary to press for lower insurance rates.

Jacksonville attorney Timothy Volpe and New Jersey actuary Allan Schwartz will evenly split the money. The two, who helped Monroe County win lower rates from state-run Citizens Property Insurance Corp., are expected to wage a similar fight for Pasco, where sinkhole claims have caused bills to rocket.

Volpe and Schwartz will focus on whether Citizens has set rates too high. Citizens has about a third of Pasco's policies. Volpe, a litigator who has worked for private insurers and regulatory agencies, got rave reviews for his Sept. 26 presentation to the board on Pasco's chances.

Citizens has proposed making sinkhole coverage optional, which it said could drop Pasco bills 43 percent. State regulators previously decided to lower the basic factor in sinkhole coverage 14 percent for all insurers, though the actual drop in bills would be smaller.

But County Attorney Robert Sumner told commissioners that a reduction of up to 60 percent is possible, based on early reviews. Sumner said he expects the state to hold a hearing on Citizens' proposal within six weeks in Pasco County.

And though Volpe and Schwartz will focus on Citizens, the changes might encourage private insurers to do what Citizens has proposed. State Rep. John Legg, R-Port Richey, said a bill could be filed as early as this fall - if there's a special session - to allow private insurers to make sinkhole coverage optional.

[Last modified October 10, 2006, 22:52:59]