investments; rural areas; tax credits

SB 1265 amends Arizona's insurance premium tax laws to establish lower tax rates for fire insurance covering property in rural areas that have contracted with private fire companies. The bill requires insurers to report specific premium income and pay a reduced 0.66% tax on these rural policies, compared to the higher 2.2% rate applied to other property. Revenue generated from this tax is directed to municipal and fire district funds to support public safety personnel retirement systems, with specific rules for allocating funds between paid and volunteer firefighters. Additionally, the legislation mandates that insurers reflect the cost savings from the lower tax rate in the premiums charged to these rural property owners.