Relates to amending the New Hyde Park exempt volunteer firemen's association, inc. use of foreign fire insurance premium taxes

BILL NUMBER:S7498

Title of bill

An act to amend the Nassau county civil divisions act, in relation to the New Hyde Park exempt volunteer firemen's association, inc. use of foreign fire insurance premium taxes

Purpose or general idea of bill

The purpose of this bill is to supply relief to sick and disabled members and their surviving dependents, to provide for the burial of deceased members, and to assist one another and our families in time of need. These purposes are consistent for virtually all benevolent associations in Nassau County, N.Y.

Summary of specific provisions

The tax funds imposed under Insurance Law §§ 553 and 554, now §§ 9104 and 9105, the so-called 2% tax, collected on the premiums on policies of fire insurance covering property situated within the limits of the New Hyde Park Fire District or within any duly organized territory in which the fire department of such fire district is obligated to render fire protection written by foreign (out of New York State) and alien (out of USA) insurance companies.

These public funds, were however, restricted by the precept for payment of foreign and alien fire insurance premiums. The precept in the case of the New Hyde Park Exempt Volunteer Firemen's Association, Inc. limited the use of said tax funds to "the care of indigent members of the New Hyde Park Fire Department and of such corporation and their families" only. This is in stark juxtaposition to both its original Certificate of Incorporation as discussed above wherein providing relief to sick and disabled members and their families together with providing for the burial of deceased members were primary purposes for the organization. Please note that the New York State Comptroller declared that "death" was the ultimate disability.

Based on an analysis of the Special Acts of the 51 Benevolent Associations in Nassau County, N.Y., it reveals that 45 percent of the expenditure of 2% tax funds for the care, relief or assistance of disabled and/or indigent firemen and their families. Only two (2) limit the use of such tax funds to indigent firemen and their families exclusively.

Justification

All things being equal, the only change accomplished by the proposed legislation is to permit that which the New York State Legislature clearly intended for the vast majority of benevolent associations in Nassau County, N.Y., to do, to wit., provide relief, aid and assistance to disabled and/or indigent volunteer and exempt firefighters and their families. The New Hyde Park Exempt Firemen's Association, Inc. is only seeking parity with the other benevolent associations in Nassau County, N.Y.

Fiscal implications

Potentially none to the state.

Prior legislative history

New bill.

Effective date

This act shall take effect immediately.