Warren County Fiscal Court Proposes Insurance Tax

By  | 

Warren County Fiscal Court is considering an ordinance that would impose an insurance premium tax on forms of insurance like casualty, auto, fire, and health, among others.
While that tax would be paid to the county by the insurance companies, some think it won't really be the insurance companies paying the that cost, but you and me.

"It's going to go directly to the clients. The company can't afford to pay the additional premium, so they'll just relay it to the pay and tax the insurer. In my opinion, it would be quite a burden," said Mike Reynolds, Kentucky Farm Bureau Insurance Agency Manager.

Many are concerned that city and city annex taxpayers will pay a new tax on top of their existing insurance tax, but County Judge Executive Mike Buchanon says that's not the case.

"It does not effect anyone in the city. You can't pay double. All five cities in Warren county have been collecting the insurance premium tax for the past several years," said Warren County Judge Executive Mike Buchanon.

Those county tax rates will be the same ones imposed by the city of Bowling Green but will not overlap. The purpose to ensure fire and law enforcement have adequate radio systems and other essentials.

Those things improve each fire district's Insurance Services Office rating or ISO, which simply means the district is considered safer and less expensive to insure. The lower the number the lower the cost.

"They provide a service that keeps your insurance premiums low. The difference between when we went from 9's to 7's in some departments, was about a 42 percent decrease in premium," said Buchanon.

Buchanon says adding the two to seven percent tax on some premiums will actually lower every taxpayer's premiums much more by lowering the ISO ratings and to pay for them, they propose adding the insurance tax.

Buchanon says the Warren County Fiscal Court is not rushing to vote on the ordinance.

While they originally planned to have the second reading this Friday, they want to further educate taxpayers on its purpose before making a decision. The second reading is being postponed. When it is scheduled, Buchanon says it will be open to the public for comment.

Buchanon says they hope to have a decision by March, so the new taxes can take effect in July of next year.

Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus