Bill > A5574

This bill increases the tax rate on fire insurance premiums from two percent to three percent for out-of-state insurers operating in New Jersey. Currently, insurance companies not organized under New Jersey law that write fire insurance policies on properties in the state are required to submit an annual report to the Treasurer of the New Jersey State Firemen's Association by March 1st, detailing the premiums received during the previous year. Under the existing law, these insurers pay a two percent tax on those premiums, which will now be raised to three percent. The bill also applies this tax increase to New Jersey-based agents, brokers, or insurers who place fire insurance with out-of-state companies. The tax revenues are allocated to local firemen's relief associations and the New Jersey Firemen's Home, supporting these organizations that provide support and services to firefighters. The new tax rate will take effect on the January 1st following the bill's enactment, ensuring insurers have time to adjust their financial calculations and reporting processes.

Business and Industry

https://www.njleg.state.nj.us/bill-search/2024/A5574