Arizona SB 1394: health directives registry; premium tax

Bill Text

SB1394 - 562R - I Ver 

 REFERENCE TITLE: health directives registry; premium tax

 State of Arizona

 Senate

 Fifty-sixth Legislature

 Second Regular Session

 2024

 SB 1394

 Introduced by 

 Senators 
 Alston: Fernandez

An 
Act

amending sections 
20-224, 20-224.02, 20-225 and 20-227, Arizona Revised 
Statutes; amending title 36, chapter 32, article 7, Arizona Revised Statutes, 
by adding section 36-3297; relating to the health care directives registry.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 20-224, Arizona Revised 
Statutes, is amended to read:

START_STATUTE20-224. Premium tax; reports

A. On or before March 1 of each year, each 
authorized domestic insurer, each other insurer and each formerly authorized 
insurer referred to in section 20-206, subsection B shall file with the 
director a report in a form prescribed by the director showing total direct 
premium income, including policy membership and other 
fees, and all other considerations for insurance from all 
classes of business whether designated as a premium or otherwise received by it 
during the preceding calendar year on account of policies and contracts 
covering property, subjects or risks located, resident or to be performed in 
this state, after deducting from such total direct premium income applicable 
cancellations, returned premiums, the amount of reduction in or refund of 
premiums allowed to industrial life policyholders for payment of premiums 
direct to an office of the insurer and all policy dividends, refunds, savings 
coupons and other similar returns paid or credited to policyholders within this 
state and not reapplied as premiums for new, additional or extended 
insurance. No a deduction 
shall not be made of the cash surrender values of 
policies or contracts.� Considerations received on annuity contracts, as well 
as the unabsorbed portion of any premium deposit, shall not be included in 
total direct premium income, and neither shall be subject to 
tax. The report shall separately indicate the total direct fire 
insurance premium income received from property located in the incorporated 
cities and towns certified by the office of the state fire marshal pursuant to 
section 9-951, subsection B, as procuring the services of a private fire 
company.

B. Coincident with the filing of the tax report, 
each insurer shall pay to the director for deposit, pursuant to sections 35-146 
and 35-147, a tax on such net premiums at the following rates:

1. For fire insurance:

(a) On property located in a city or town certified 
by the office of the state fire marshal pursuant to section 9-951, 
subsection B, as procuring the services of a private fire company, .66 percent.

(b) On all other property, 2.2 percent.

2. For disability insurance, 2.0 percent.

3. For health care service plans, the rates prescribed 
under sections 20-837, 20-1010 and 20-1060.

4. For other insurance:

(a) For premiums received in calendar year 2016, 
1.95 percent.

(b) For premiums received in calendar year 2017, 
1.90 percent.

(c) For premiums received in calendar year 2018, 
1.85 percent.

(d) For premiums received in calendar year 2019, 
1.80 percent.

(e) For premiums 
received in calendar year 2020, 1.75 percent.

(f) For premiums 
received in calendar year 2021 and for each subsequent calendar year, 1.70 
percent.

C. Any payments of tax pursuant to subsection F G of this section shall be 
deducted from the tax payable pursuant to subsection B of this 
section. Each insurer shall reflect the cost savings attributable to 
the lower tax in fire insurance premiums charged on property located in an 
incorporated city or town certified by the office of the state fire marshal 
pursuant to section 9-951, subsection B, as procuring the services of a 
private fire company.� No an insurer 
shall be is not liable to the state 
or to any other person, or shall be and is 
not subject to regulatory action, relating to 
the calculation or submittal of fire insurance premium taxes based in good 
faith on the office of the state fire marshal's certification.

D. Eighty-five percent of the tax paid under 
this section by an insurer on account of premiums received for fire insurance 
shall be separately specified in the report and shall be apportioned in the 
manner provided by sections 9-951, 9-952 and 9-972, except 
that all of the tax so allocated to a fund of a municipality or fire district 
that has no volunteer firefighters or pension obligations to volunteer 
firefighters shall be appropriated to the account of the municipality or fire 
district in the public safety personnel retirement system and all of the tax so 
allocated to a fund of a municipality or fire district that has both full-time 
paid firefighters and volunteer firefighters or pension obligations to full-time 
paid firefighters or volunteer firefighters shall be appropriated to the account 
of the municipality or fir