La. Officials Report Requests for Insurance Tax Credit Lagging

More than a million Louisiana homeowners apparently have overlooked a large tax refund due to them as state reimbursement on their insurance premiums following Hurricane Katrina, state officials say.

The claim is available to nearly everyone who pays property insurance premiums in Louisiana. More than 200,000 people who have taken advantage of it have pocketed an average of more than $168 each, according the Louisiana Department of Revenue.

“For some reason, folks are not taking advantage of the tax credit that was set up that we estimate they’re entitled to,” said Commissioner of Administration Jerry Luke LeBlanc said. “I don’t know that anyone can explain why.”

The state estimates that up to $200 million is still on the table for the refund.

In December, the Legislature set aside $239 million to refund special assessments that policyholders paid in 2005 and 2006 to help bail out Louisiana Citizens Property Insurance Corp., the state’s insurer of last resort that was overwhelmed by damage claims from Katrina.

The typical assessment was equal to 15 percent of the homeowner’s annual premium.

As of early July, 214,400 claims had been made for the tax refund, totaling $36.1 million. The refund was supposed to be taken on state income tax forms due in May.

Officials say taxpayers can still file an amended tax form to get the credit.

Information from: The Times-Picayune, www.timespicayune.com.

Topics Louisiana