Skip to content

250% Insurance Tax Premium Fee Increase Set for Final Vote

Mayor Royse and Tax Admin. Hurt endorse and explain the increase.

By Allyson Dix, Managing Editor/Barren County Progress

 

Glasgow Tax Administrator Nick Hurt is interviewed by podcast reporter, Glasgow Mayor Henry Royse.
Photo/Glasgow Mayor Podcast

Occupational Tax Administrator Nick Hurt shared details on a podcast recently on tax premium fee increases he proposed in the Glasgow City Council meeting in late February that he “hopes” will bring in an additional $200,000 in revenue. No discussion was had in either the podcast or council meeting what the need for the additional revenue is or where that money will be funneled.

The rate increase, according to Hurt, is only for first year premiums for life insurance policies and individual health insurance policies. He said he received an e-mail asking for him to review the matter. It wasn’t disclosed where the email came from or its purpose.

After comparing Glasgow’s insurance premium fees to surrounding areas, Hurt said, “I got to noticing we were extremely low in comparison to everyone else.”

Hurt explained the insurance premium fees for the health and life insurances were set by ordinance at 2% in 1966 while all other insurance fees were set at 5%. He said he then compared to surrounding areas finding that Glasgow was the lowest at 2% and other areas were around 5%.

There was no discussion as to how insurance costs have increased giving the city larger amounts of tax revenue or where Kentucky ranks in overall insurance costs nationally or how Glasgow rates might compare to other cities.

“So, I decided I was going to see if we could do an increase on just the life and health,” Hurt told Glasgow Mayor Henry Royse on Royse’s podcast. “It’s no casualty, no motor vehicle, no fire, nothing. Just life and health.”

According to the 2023-2024 Department of Insurance Local Government Premium Tax Schedule, Bowling Green’s life and health premium fee rates are also at 2% while Cave City has a rate of 8% on both, Edmonton 7%, and Horse Cave 8%.

Hurt proposed a rate hike of 3 percentage points equaling a 250% premium tax fee increase on these specific areas.

As for the revenue, Hurt said, “If you look at it from, there’s around 15,000 people in the City of Glasgow according to the last census. If you break it down, the $200,000 increase that we’re hoping, that’s only like $1.11 per person. If it only affects a quarter of the people, it’s still just $4.44 per person, per month.”

“It’s not a huge increase, but when you spread it across all the people, it does bring in a decent amount into the city that we can put back into the community and help others,” Hurt added.

Hurt also said, “There is a little bit of misunderstanding or misinformation out there that I proposed that in two years, we’d go to 7%. I didn’t–I proposed it was a possibility we’d look at it and maybe go to 7%.”

In the Feb. 26 council meeting, Hurt explained the first-year life insurance premium fees:

“The life [insurance premium fee] is only on the first year premiums so if you take out…a life insurance policy, you’ll pay your first year premiums. That fee is only on that first year when you start paying. The second year, that fee is not added on to that.”

If the council passes the increase, it will put Glasgow at 5% across the board for all insurance premium tax fees.

The second reading of this ordinance is planned for March 11 at 6 p.m. at the next council meeting in Glasgow City Hall Council Chambers.

1 Comment

  1. Brad on March 10, 2024 at 7:19 pm

    No specific need for it. He just noticed theirs was lower. That is not a bad thing for your citizens. This is a greedy money grab that has no identified purpose. Typical government douche move.

Leave a Comment