9-951. Disposition of fire insurance premium tax
proceeds; composition of fund
A. The proceeds of the annual tax provided by law on the gross amount of all
premiums received on policies and contracts of fire insurance covering property within
this state, after deducting cancellations, return premiums, dividends and the amount
received as reinsurance on business in this state, are appropriated and set aside for
distribution to cities and towns and legally organized fire districts that procure the
services of private fire companies and for the payment of benefits pursuant to this
article, article 4 of this chapter or title 38, chapter 5, article 4.
B. Not later than April 30, the state fire marshal shall certify to the state
treasurer the incorporated cities and towns having organized fire departments, the
incorporated cities and towns and legally organized fire districts that procure the
services of a private fire company and the areas served by legally organized fire
districts, the department of insurance shall certify to the state treasurer the
respective amounts of tax on fire premiums paid in the previous year for properties
located in this state, and the department of revenue shall certify to the state treasurer
the full cash value of the real property and improvements for the previous year in each
incorporated city and town and legally organized fire district that procures the services
of a private fire company and in each area served by a department or a legally organized
fire district. The total amount of the tax proceeds shall then be prorated among the
several incorporated cities and towns and legally organized fire districts in proportion
to the full cash value of the real property and improvements in each incorporated city
and town and legally organized fire district that procures the services of a private fire
company and in each area served by a department or a legally organized fire district to
the total full cash value of all incorporated cities and towns and legally organized fire
districts that procure the services of a private fire company and incorporated cities and
towns that have a fire department and legally organized fire districts in this state.
C. Each incorporated city or town having an organized fire department and each
legally organized volunteer fire district shall deduct five per cent from the salaries or
compensation of its fire fighters and add a like amount from its general revenues. The
employer or the employee may add a contribution greater than that specified in this
section to the fire fighters' relief and pension fund. The total of the two amounts
shall be paid each month into the fire fighters' relief and pension fund. The treasurer
of each board shall keep a record of the salary deductions. If a fire fighter dies under
circumstances not entitling his dependents to a benefit from the fire fighters' relief
and pension fund, or if he becomes separated from the service voluntarily or
involuntarily without having become eligible for retirement benefits thereunder, all
deductions previously made from his salary under this article shall become payable, plus
interest as determined by the board, to his beneficiary in the event of his death, or
otherwise to the fire fighter.
D. Payroll deductions made under subsection C of this section, plus any additional
sums the board of trustees may add, shall be set aside in a permanent reserve fund, the
income of which, but no part of the principal, shall be used to pay retirement benefits
or relief, but, in order to pay the refunds provided for in subsection C of this section,
that portion of the principal that accrues from salary deductions may be drawn upon when
necessary.
E. For purposes of this section and section 9-952, full cash value of real property
and improvements for the previous year with respect to each incorporated city and town
which procures the services of a private fire company shall be limited to thirty per cent
of the amount certified by the department of revenue and the percentage shall be utilized
in computing the entitlement of an incorporated city or town which procures the services
of a private fire company.
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