House of Representatives

HB 2275

unearned premiums; refund

Sponsors: Representatives Leff: Marsh

W/D	Committee on Financial Institutions and Insurance
F	Committee on Commerce and Economic Development
	Caucus and COW
	Third Read
	As Passed the House

HB 2275 establishes that an insurer that cancels or does not renew an insurance policy must refund the insured any unearned premium.

Current Status

HB 2275 failed in the Commerce and Economic Development Committee.

Summary of the Proposed Strike-Everything Amendment

A proposed strike-everything amendment to HB 2275 clarifies that persons engaged in the business of lawn maintenance are not classified as prime contractors who are subject to the applicable tax.

History

The Arizona Transaction Privilege Tax Ruling (TPR 01-1) released in May 2001 by the Arizona Department of Revenue sought to provide interpretive guidance to clarify which lawn maintenance activities constitute nontaxable service activities, taxable retail sales, and taxable prime contracting activities. The strike-everything amendment to HB 2275 proposes to statutorily provide further clarity.

Provisions

· Stipulates that persons involved in lawn maintenance services are not subject to the prime contracting classification for tax purposes. Outlines and clarifies the definition of lawn maintenance services.

· Clarifies the persons engaged in landscaping activities are subject to the applicable prime contracting tax classification. Defines pertinent landscaping activities.

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· 45th Legislature

· Second Regular Session 2 March 26, 2002

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