Increases from two percent to three percent the tax on fire insurance premiums written by out-of-State insurers.

A1339

ASSEMBLY, No. 1339

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman CODY D. MILLER

District 4 (Atlantic, Camden and Gloucester)

Co-Sponsored by:

Assemblyman Hutchison

SYNOPSIS

���� Increases from two percent to three percent the tax
on fire insurance premiums written by out-of-State insurers.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning the tax on certain fire insurance
premiums, and amending various sections of statutory law.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� R.S.54:18-1 is amended
to read as follows:

���� 54:18-1.����� Each insurer,
not organized under the laws of the State of New Jersey, which takes fire
insurance risks on property in this State, shall on or before March 1 in each
year, for the period during the 12 months ending December 31 of the preceding
year, cause to be made to the Treasurer of the New Jersey State Firemen's
Association, on behalf of each municipality or fire district in this State, for
any property on which the insurer has taken any fire insurance risk situate
therein, a true return in writing, verified by the oath of an officer or
representative of the insurer, showing the amount of all premiums received by
or agreed to be paid to the insurer, for insurance underwritten by that insurer
against loss or injury by fire upon real or personal property, except
automobiles that are not stored for sale, including loss of use thereof in the
municipality, or fire district.� The return also shall contain the Insurance
Services Office "ISO" numerical identification code or designation
assigned by the New Jersey State Firemen's Association for such municipality or
fire district.� The insurer shall, on or before March 1 of each year, pay to
the Treasurer of the New Jersey State Firemen's Association the sum of
[
2%
]

three
percent
upon the amount of all the premiums received or agreed to be paid
during the 12 months ending December 31 of the preceding year.

���� If the insurer fails to comply
herewith, and the failure is reported to the Commissioner of Banking and
Insurance in writing, attested by the oath of the Treasurer of the New Jersey
State Firemen's Association, then the commissioner shall forthwith revoke the
certificate of authority issued to the insurer, and, until the provisions of
this chapter have been complied with by the insurer, it shall not transact
further business in this State.

(cf: P.L.1997, c.41, s.1)

���� 2.��� R.S.54:18-2 is amended
to read as follows:

���� 54:18-2.����� If any person
residing or having an office or place of business in this State, in the
capacity either of agent, broker, or insurer shall effect, or cause to be
effected, any insurance, or shall receive any application for the effecting of
insurance upon property in any municipality or fire district in this State, and
shall directly or indirectly place the insurance or cause the same to be placed
in an insurer not organized under the laws of this State, the agent, broker or
insurer shall make a return to the Treasurer of the New Jersey State Firemen's
Association on behalf of the municipality or fire district in which the
property is situate, as set forth in R.S.54:18-1, on or before March 1 in each
year.� The return shall contain an account, under oath, of all premiums
received by such agent, broker or insurer, or by any other person for him, or
agreed to be paid, during the 12 months ending December 31 of the preceding
year, for insurance against loss or injury by fire upon real or personal
property, except automobiles that are not stored for sale, including loss of
use thereof in the municipality or fire district.� The return also shall
contain the Insurance Services Office "ISO" numerical identification
code or designation assigned by the New Jersey State Firemen's Association of
such municipality or fire district.� The agent, broker or insurer shall, on or
before March 1 of each year, pay to the Treasurer of the New Jersey State
Firemen's Association the sum of
[
2%
]

three
percent
upon the amount of all the premiums received or agreed to be paid
as aforesaid within the 12 months ending December 31 of the preceding year.�
The Treasurer of the New Jersey State Firemen's Association shall allocate the
tax monies received to the appropriate local firemen's relief association
incorporated and affiliated with the State association, collected on behalf of
the municipality or fire district under the control thereof, and to the Board
of Managers of the New Jersey Firemen's Home.� Any monies received, allocated
or paid by any agent, broker or insurer pursuant to the provisions of this
chapter on behalf of any municipality or fire district that does not have a
local firemen's relief association affiliated with the New Jersey State
Firemen's Association shall be allocated to the New Jersey Firemen's Home in
accordance with the provisions of section 7 of P.L.1997, c.41 (C.54:18-8).

(cf: P.L.1997, c.41, s.2)

���� 3.��� Section 7 of P.L.1997,
c.41 (C.54:18-8) is amended to read as follows:

���� 7.��� All monies received by
the Treasurer of the New Jersey State Firemen's Association from the
[
2%
]

three
percent
tax on fire insurance premiums paid by insurance companies not
organized in this State, on behalf of municipalities or fire districts which do
not have a duly incorporated local firemen's relief association affiliated with
the State Association under R.S.43:17-2 et seq., shall be dedicated to the New
Jersey Firemen's Home.� Upon adoption of the budget, subject to the approval of
the Governor, in accordance with R.S.30:7-1 et seq., these funds shall be
allocated to the Board of Managers for the operation of the New Jersey
Firemen's Home.� A certified copy of the budget approved by the Governor shall
be filed immediately with the Treasurer of the New Jersey State Firemen's
Association.

���� The Treasurer of the New
Jersey State Firemen's Association shall return to the general fund of the
State Association the balance of the monies not required for the annual
operation of the New Jersey Firemen's Home.

���� If there are not sufficient
funds in the account for the annual operating expenses of the New Jersey
Firemen's Home in accordance with R.S.30:7-1 et seq., the Board of Managers of
the New Jersey Firemen's Home shall certify the amount of the deficiency to the
Treasurer of the New Jersey State Firemen's Association.� The certification
shall be filed before the fiscal year for the New Jersey Firemen's Home
commences.� The certification shall set forth the specific sum necessary to
fund the operational expenses of the New Jersey Firemen's Home.� The
operational budget shall include all necessary costs for the maintenance and
operation of the home, including purchase of equipment.� Upon receipt of the
certification, the Treasurer of the New Jersey State Firemen's Association
shall pay the certified amount to the New Jersey Firemen's Home no later than
May 1 of each year.

���� The procedure set forth below
shall be followed if the Board of Managers proposes a capital project
consisting of a building addition to the New Jersey Firemen's Home or the
construction of a new facility:

���� a.� At least 30 days before
the capital project is submitted to the Governor, the Board of Managers of the
New Jersey Firemen's Home shall submit to the officers and executive committee
of the New Jersey State Firemen's Association, a description of the proposed
project, and costs thereof, including future operational costs.� Within 30 days
of receipt of the notice the officers of the New Jersey Firemen's Home and New
Jersey State Firemen's Association shall approve or disapprove the funding
necessary therefor.� After the project has been approved or disapproved, the
executive committee shall meet in a special executive session to confirm the
action of the officers.

���� b.� If the officers or the
executive committee disapproves the proposed capital project, the board of
managers or the officers may appeal to the Commissioner of Banking and
Insurance who shall issue a final decision within 30 days, but in any event not
later than November 1 of any year.� The budget then shall be submitted to the
Governor for approval pursuant to law.

(cf: P.L.1997, c.41, s.7)

���� 4. This act shall take effect
on the January 1 next following the date of enactment.

STATEMENT

���� This bill increases the tax
rate on fire insurance premiums collected by out-of-state insurers from two
percent to three percent.

���� Under current law, insurance
companies not organized under New Jersey law that write fire insurance policies
on New Jersey properties are required to pay a tax on two percent of the
premiums received from such policies.� Similarly, New Jersey-based agents,
brokers, or insurers who place fire insurance with out-of-state companies are
also required to pay tax on two percent of these premiums.� In both cases, the
tax is paid to the Treasurer of the New Jersey State Firemen's Association.