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Senate Engrossed |
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State of Arizona Senate Fifty-fourth Legislature First Regular Session 2019
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CHAPTER 237
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SENATE BILL 1182 |
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AN ACT
amending sections 9-951 and 9-952, arizona revised statutes; relating to fire insurance premium tax proceeds.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 9-951, Arizona Revised Statutes, is amended to read:
9-951. Disposition of fire insurance premium tax proceeds; composition of fund
A. The proceeds of the annual tax provided by law on the gross amount of all premiums received on policies and contracts of fire insurance covering property within this state, after deducting cancellations, return premiums, dividends and the amount received as reinsurance on business in this state, are appropriated and set aside for distribution to cities and towns and legally organized fire districts that procure the services of private fire companies and for the payment of benefits pursuant to this article, article 4 of this chapter or title 38, chapter 5, article 4.
B. Not later than April 30, the office of the state fire marshal shall certify to the state treasurer the incorporated cities and towns having that have organized fire departments, the incorporated cities and towns and legally organized fire districts that procure the services of a private fire company and the areas served by legally organized fire districts, and the department of insurance shall certify to the state treasurer the respective amounts of tax on fire premiums paid in the previous year for properties located in this state. , not later than june 15, and the department of revenue shall certify to the state treasurer the full cash value of the real property and improvements for the previous year in each incorporated city and town and legally organized fire district that procures the services of a private fire company and in each area served by a fire department or a legally organized fire district. The total amount of the tax proceeds shall then be prorated among the several incorporated cities and towns and legally organized fire districts in proportion to the full cash value of the real property and improvements in each incorporated city and town and legally organized fire district that procures the services of a private fire company and in each area served by a department or a legally organized fire district to the total full cash value of all incorporated cities and towns and legally organized fire districts that procure the services of a private fire company and incorporated cities and towns that have a fire department and legally organized fire districts in this state.
C. Each incorporated city or town having that has an organized fire department and each legally organized volunteer fire district shall deduct five percent from the salaries or compensation of its firefighters and add a like amount from its general revenues. The employer or the employee may add a contribution greater than that specified in this subsection to the fire fighters' relief and pension fund. The total of the two amounts shall be paid each month into the fire fighters' relief and pension fund. The treasurer of each board shall keep a record of the salary deductions. If a firefighter dies under circumstances not entitling that do not entitle the firefighter's dependents to a benefit from the fire fighters' relief and pension fund, or if the firefighter becomes separated from the service voluntarily or involuntarily without having become eligible for retirement benefits thereunder under the fire fighters' relief and pension fund, all deductions previously made from the firefighter's salary under this article shall become payable, plus interest as determined by the board, are payable to the firefighter's beneficiary in the event of the firefighter's death, or otherwise to the firefighter.
D. Payroll deductions made under subsection C of this section, plus any additional sums the board of trustees may add, shall be set aside in a permanent reserve fund, the income of which, but no part of the principal, shall be used to pay retirement benefits or relief, but, in order to pay the refunds provided for in subsection C of this section, that portion of the principal that accrues from salary deductions may be drawn on when necessary.
E. For the purposes of this section and section 9‑952, full cash value of real property and improvements for the previous year with respect to each incorporated city and town that procures the services of a private fire company shall be are limited to thirty percent of the amount certified by the department of revenue and the percentage shall be utilized in computing the entitlement of an incorporated city or town that procures the services of a private fire company.
Sec. 2. Section 9-952, Arizona Revised Statutes, is amended to read:
9-952. Disposition of fire insurance premium tax
Not later than July 1 31 of each year, the state treasurer, using the information provided by the cities and towns and legally organized fire districts, the office of the state fire marshal, the department of insurance and the department of revenue as provided in section 9‑951, subsection B, shall distribute the fire insurance premium tax to the respective incorporated cities and towns and legally organized fire districts in proportion to the full cash value of the real property and improvements in each incorporated city and town and legally organized fire district that procures the services of a private fire company and in each area served by a fire department or legally organized fire district. The warrant issued by the state treasurer to incorporated cities and towns and legally organized fire districts having organized fire departments and to legally organized fire districts shall be identified as "fire fighters' relief and pension fund". The warrant issued by the state treasurer to an incorporated city or town or legally organized fire district procuring the services of a private fire company that has a pension plan covering firefighting personnel shall be identified for deposit in the municipality's general fund or, in the case of a fire district, in the fire fighters' relief and pension fund.
APPROVED BY THE GOVERNOR MAY 14, 2019.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 14, 2019.