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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
AMENDED
fire insurance; premium tax proceeds
Purpose
Extends to June 15 the date by which the Arizona Department of Revenue (ADOR) is required to certify to the State Treasurer the full cash value (FCV) of real property for the previous year in areas served by a fire department or fire district. Extends to July 31 the date by which the State Treasurer must distribute the fire insurance premium tax.
Background
Current statute requires the collection of an annual premium tax on fire insurance policies. These proceeds are then distributed to cities and towns and legally organized fire districts that procure the services of private fire companies, based on the proportion of the FCV of real property and improvements in each area served by a fire department or fire district to the total FCV of all areas served by a fire department or fire district. These monies are used for the payment of retirement benefits for firefighters (A.R.S. § 9-951).
Using information provided by the Office of the State Fire Marshal and the Arizona Department of Insurance, ADOR certifies to the State Treasurer the FCV of the real property and improvements for the previous year in each area served by a fire department or fire district by April 30 (A.R.S. § 9-951). The State Treasurer then distributes the fire insurance premium tax by July 1 (A.R.S. § 9-952).
Laws 2017, Chapter 258 extended the date by which outside sources must report Fire Fighters' Relief and Pension Fund information to the Office of the State Fire Marshal from January 31 to March 31 (A.R.S. § 9-956).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Extends the date, from April 30 to June 15, by which ADOR is required to certify to the State Treasurer the FCV of the real property and improvements for the previous year in each area served by a fire department or fire district.
2. Extends the date, from July 1 to July 31, by which the State Treasurer must distribute the fire insurance premium tax to incorporated cities and towns and legally organized fire districts.
3. Makes technical changes.
4. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Extends the date, from July 1 to July 31, by which the State Treasurer must distribute the fire insurance premium tax to incorporated cities and towns and legally organized fire districts.
Senate Action
FIN 2/13/19 DPA 10-0-0
Prepared by Senate Research
February 15, 2019
CS/LC/kja