BISMARCK — Lifting a legislative limit on insurance tax revenue sent to fire districts could reduce North Dakotans' premiums, State Auditor Josh Gallion said Friday, Sept. 20.
Gallion's office released the results of an audit showing $13.4 million in insurance premium taxes was sent to the state's general checking account over the past eight years rather than going to fire districts because of limits set by the Legislature. Increased funding to fire districts could reduce the rating given by an insurance advisory organization, which could lower premiums, auditors said in a news release.
"Increasing the funding to these fire districts would allow for better equipment, more training, and cost savings to citizens through lower insurance premiums,” Gallion, a Republican, said in a statement.
State Insurance Commissioner Jon Godfread, a Republican, said homeowner insurance premiums make up the largest generator of the tax revenue going to fire districts. He said the Legislature has taken steps the address the issue, but more can be done.
"It just seems a little disingenuous that we're collecting taxes for this purpose but then it's going to the general fund," Godfread said.
