TRENTON — State Senator Paul A. Sarlo’s legislation to help municipalities deal with rising flood insurance rates cleared both legislative houses today.
The bill, S-762, would provide that in the first year after changes to federal flood insurance maps any increases in flood insurance premiums in excess of 2 percent would be exempt from the state’s 2 percent property tax cap. If a local government did not previously carry flood insurance, the entire cost of first year flood insurance resulting from changes to federal flood maps would be exempt from the property tax levy cap. Additionally, the bill provides additional relief from the caps in subsequent years.
“Changes in flood maps and rising insurance premiums create a real hardship on local governments, and this bill helps them pay for the required flood protection without creating additional burdens to fund critical services under the state’s cap,” said Sarlo (D-Bergen, Passaic).
The bill passed the senate by a 37-0 vote before being sent to the Assembly, where it passed by a 64-11-2 vote. It now heads to the governor’s desk.