A Florida TaxWatch economic report
The Effect of Changes in the National Flood Insurance Program on Florida
Rescuers traverse flood waters searching for those in need of help. [Photo: NOAA]
The Effects on Florida Individuals, Businesses and Local Governments
The changes required by the Biggert-Waters Act are already affecting home sales in Florida, when purchasers or potential purchasers learn of the increased costs of the new flood insurance rate structure. This could continue to lead to significant reductions in home sales and values, and to reductions of county tax receipts as property values are re-calculated accordingly.
Legislative and Judicial Options
Multiple bills are being considered by the U.S. Congress to delay implementation of the Act, proponents arguing that substantial increases in policy premiums will hurt many individuals, as well as economies still recovering from the most recent recession.
Florida was joined by Alabama in filing an Amicus Curae brief in early November 2013 in a lawsuit originally filed by Mississippi against FEMA arguing that FEMA failed to complete the required affordability study before implementing the Biggert-Waters Act, and that they based rates on outdated information. The brief asks the Court to compel FEMA to complete the required studies, and take into account the economic impact of the bill before implementing it.
The implementation of the Biggert-Waters Act will be important to Floridians who live and work in and around our most populated floodplain areas. An economic impact analysis of removing the federal subsidies should be conducted to determine the likely impact on Florida’s economy.
TAXWATCH CENTER FOR COMPETITIVE FLORIDA ADVISORY BOARD
SENATOR GEORGE LEMIEUX
Chairman of the Board, Gunster
MR. JOHN B. ZUMWALT III
Florida TaxWatch Chairman & Immediate Past Chair, CCF Advisory Board
WILLIAM E. CARLSON, JR
MR. MARSHALL CRISER, III
President, AT&T Florida
Immediate Past Chairman, Florida TaxWatch
MR. DOUG DAVIDSON
Market Executive, Bank of America Merrill Lynch
MR. J. CHARLES GRAY
Chairman, GrayRobinson Law Firm
MR. JON FERRANDO
Executive VP & General Counsel, AutoNation, Inc.
GOVERNOR BOB MARTINEZ
Sr. Policy Advisor, Holland & Knight
MR. DAVE MCINTOSH
Trustee, BlueField Ranch Mitigation Bank Trust
MR. JAMES M. REPP
Senior VP, AvMed Health Plans
MS. MICHELLE A ROBINSON
President, SouthEast Region, Verizon
MR. DAVID A. SMITH
Former Chairman, Florida TaxWatch
MR. MICHAEL SOLE
VP for State Governmental Affairs, Florida Power & Light
Vice President, The Walt Disney Company
Economic Commentary written by
Jerry D. Parrish, Ph.D., Chief Economist, and Executive Director of the Center for Competitive Florida, with assistance from Jennifer Linares, MS, Research Analyst.
Robert Weissert, Chief Research Officer & General Counsel
Chris Barry, Director of Publications
John Zumwalt, III, Chair, Florida TaxWatch
Sen. George LeMieux Chair, Center for Competitive Florida
Dominic M. Calabro, President, CEO, Publisher, and Editor
Florida TaxWatch Research Institute, Inc.
Copyright © Florida TaxWatch, November 2013