City letter on importance of Fire Insurance Premium Tax distributions

by User Not Found | May 05, 2017

The cities that are impacted by changes to the distribution formula for Fire Insurance Premium Tax distributions in the Senate-proposed budget sent a letter last week to Senators opposing the changes.

The cities that are impacted by changes to the distribution formula for Fire Insurance Premium Tax distributions in the Senate-proposed budget sent a letter last week to Senators opposing the changes. The changes could have the effect of eliminating this distribution for the cities’ pre-LEOFF firefighter pension funds and LEOFF 1 medical costs.

The letter also explained that the proposed new requirements do not take into account the complexities of the property tax system and the realities of the impact of the one percent property tax limit.

The changes also do not take into account the significant LEOFF 1 medical cost liability these and other cities face. In a 2015 report, the State Actuary estimated the accrued liability for LEOFF 1 medical benefits is $3 billion for approximately 6,300 retirees. Nearly 40 percent of these retirees were city firefighters.

If your city is a recipient of this revenue, take a moment while legislators are back home to let them know how important this is to your ability to meet these obligations. For more information about impacts of the proposed budgets on cities, see From the Director.

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