insurance premium tax

Politics
3:44 pm
Thu February 14, 2013

Councilwoman Madonna Flood Withdraws Support from Insurance Tax Hike Ordinance

Councilwoman Madonna Flood
Credit Louisville Metro Council

A second Democratic Louisville Metro Council member is pulling their sponsorship of a proposal to raise the city’s tax on insurance premiums to give affordable housing initiatives a consistent revenue stream.

Councilwoman Madonna Flood, D-24, was listed as one of original seven lawmakers backing the legislation, which seeks to increase the tax by one percentage point and raise an estimated $9.7 million for the Affordable Housing Trust Fund.

But Flood now opposes the idea and says supporters put her name on the ordinance without her consent.

"No one called to discuss with me an ordinance being filed at that particular time. We talked in generalities," says Flood. "They were gathering support, but I had a ton of questions that I asked folks about that and for some reason my name appeared on the ordinance."

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Developing
1:30 pm
Tue February 12, 2013

Council Democrats Propose Tax Increase to Pay for Housing Trust Fund

A handful of Louisville Metro Council Democrats are proposing to raise the insurance premium tax by 1 percentage point to pay for the Affordable Housing Trust Fund.

The ordinance would increase the premiums on policies such as life, casualty, home and automobile insurance from 5 percent to 6 percent.

It is estimated raising the tax will generate an additional $9.7 million in revenue towards the city's general fund. Supporters of the ordinance admit other council members may want to use new funds to fill the project $13 million budget shortfall or shore up the city's depleted road fund.

Besides housing issues, the legislation specifically speaks to the "acute need of road and sidewalk repair" and to improve transportation.

Councilwoman Tina Ward-Pugh, D-9, is one of the seven sponsors of the bill. She says if the increase passes it will last only five years, and that she and others will work to make sure it is used for housing.

"The seven of us are going to do our best to convince a total of 14 of us on the Metro Council when we come to budget negotiations that this new $10 million revenue over the course of the next year should be dedicated specifically to affordable housing issues," she says.

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