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.

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.