AZ HB2275

Reduces the insurance premium tax rate from 2.0% to 1.9% for calendar year 2014, 1.8% for calendar year 2015, and 1.7% for calendar year 2016 and thereafter.

Maintains existing exemptions and special rates, including 0.66% for fire insurance in incorporated cities/towns with private fire companies, 2.2% for other fire insurance, and rates prescribed for health care service and disability insurance.

Requires insurers to reflect cost savings from the lower tax rates in their premium charges.

Applies to authorized domestic insurers, other insurers, and formerly authorized insurers that file annual reports on direct premium income with the state director.