Budget & Taxes (Revenue)

HB 2292 adjusts Arizona's fire insurance tax rates, charging 0.66% for properties in cities/towns certified by the state fire marshal as using private fire companies (down from 2.2% for other areas). It directs 85% of the fire insurance tax revenue to local fire districts based on their firefighter composition (volunteer vs. paid), with the funds allocated to public safety retirement systems. Starting in fiscal year 2026-2027, $20 million annually from the total fire insurance tax will be distributed to a dedicated wildfire prevention authority fund. The bill affects insurers through revised tax reporting and payment schedules, and directly supports fire districts and wildfire prevention efforts.