This bill proposes an increase in the tax rate on fire insurance premiums collected by out-of-state insurers from two percent to three percent. The amendment affects the current law, specifically R.S.54:18-1 and R.S.54:18-2, which require insurers not organized under New Jersey law to report and pay taxes on premiums received for fire insurance policies written on properties in the state. The new language specifies that insurers must pay three percent of the premiums received or agreed to be paid during the previous year, replacing the previous two percent rate.

Additionally, the bill amends section 7 of P.L.1997, c.41, which outlines the allocation of tax revenues. The increased tax will continue to be directed to the Treasurer of the New Jersey State Firemen's Association, with funds allocated to local firemen's relief associations and the New Jersey Firemen's Home as appropriate. The bill is set to take effect on January 1 following its enactment.

Statutes affected:
Introduced: 54:18-8