TALLAHASSEE, Florida -- This morning the Florida Senate unanimously passed (39-0) Senate Bill 1832, sponsored by Senator Joe Negron (R-Stuart). The bill, which reduces annual vehicle registration fees for automobiles and light trucks, was immediately certified to the Florida House of Representatives.
“The Florida Senate is dedicated to keeping money in the pockets of our hardworking Floridians. This proposal does just that by reducing vehicle registration fees for every Floridian who owns a car,” said Senate President Don Gaetz (R-Niceville). “I commend Senator Negron’s diligence in reprioritizing Florida’s spending on the needs of today, not the ways of yesterday.”
If approved by the Florida House and signed by the Governor, Senate Bill 1832 would be implemented by eliminating a nearly 30-year-old tax credit that offsets a portion of the Insurance Premium Tax owed by Florida insurance companies. The funds saved by eliminating the insurance industry tax credit will offset revenue the State of Florida will lose by reducing fees associated with annual vehicle registrations.
The proposal would roll back more than half of the 2009 increase in these fees. Annual vehicle registration fees were raised during the worst of Florida’s economic downturn in 2009, a year when state revenue collections had declined approximately 20 percent from their high in 2005-06.
Reducing the registration fees is expected to save Florida taxpayers up to $220 million per year.
The sections of Chair Negron’s bill relating to the tax credit for insurance companies are effective upon becoming law and apply to the 2013 insurance premium tax year. The sections regarding fees for motor vehicle registration become effective September 1, 2013.