LOUISVILLE, Ky. (WDRB) -- Bonnie Cole showed up to this city-hosted seminar Wednesday night to learn more about how an increase would impact her insurance premiums.
She's president of the Shawnee Neighborhood Association, and she's looking for answers.
"It's like an education process for us right now," Cole said. "So we can come back and tell our community what's exactly happening — what is truth and what is fake."
Mayor Greg Fischer's proposal to cure the city's $65 million budget shortfall would increase the city's tax rates on home, life, marine and other miscellaneous policies. That proposal does not include raising rates on auto insurance.
"There's all sorts of wild numbers out there, and we just want to give the chance to folks to see what the real impact is," said Eric Friedlander, chief of resilience and community services for the city of Louisville.
So here's the real numbers:
Right now, the tax rate on insurance premiums is 5 percent. Fischer's proposed tax increase would raise rates to 12.5 percent in fiscal year 2020 and 2021. In 2022, the tax would go up to 13.5 percent. By 2023, the tax rate would be 15 percent.
"In Louisville, $20 is a difference-maker," financial expert Mark Lynch said. "Most people don't have $500 in their bank accounts right now in case something happens."
Metro Councilwoman Nicole George understands that and thinks more seminars like this would be good for the city so people can truly understand what changes would look like.
"I'm always concerned any rate increase and what that means and how that's felt in the community," George said. "And so financial literacy is a big component of that."
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- Q&A | Mayor Fischer explains need for tax hike to fill $65 million budget gap
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