SB 1845 Arizona Senate · 57th Legislature - Second Regular Session

taxation omnibus

SB 1845 amends Arizona's insurance premium tax laws to establish specific tax rates for various insurance types, including fire, disability, and health care plans. The bill requires insurers to file detailed annual reports on premium income and mandates monthly tax payments for larger companies, while also introducing a mechanism for insurers to claim tax credits. A key provision creates a special tax rate for fire insurance on properties in cities that use private fire companies, with the collected revenue directed to local public safety retirement systems. Additionally, the legislation allows for electronic submission of tax reports and payments starting after December 31, 2017, and outlines procedures for handling overpayments and refunds.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Apr 2026

Committee Review

Floor Vote

Governor

Introduced Apr 27, 2026 Last action May 4, 2026

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What changed between versions

Introduced Version → Senate Engrossed Version · 7 edits

MODERATE

This bill updates Arizona's tax code to modernize premium tax rates for insurers, expand deductions for vehicle sales to nonresidents, and clarify tax relief rules for international operations centers and renewable energy projects. It also adds new provisions for peer-to-peer car sharing and shared vehicle owners to exclude certain transactions from sales tax. These changes aim to adjust tax obligations to current economic conditions and clarify liabilities for specific industries.

Scope change

The bill expands the scope of tax exemptions to include peer-to-peer car sharing programs and shared vehicle owners, while modifying the scope of tax relief for international operations centers to include stricter renewable energy investment requirements.

TIMELINE

Premium tax rates for 'other insurance' were updated to include rates for calendar years 2020 (1.75%) and 2021 and subsequent years (1.70%), replacing the previous cutoff at 2019.

REQUIREMENT

International operations centers must now meet stricter requirements, including a minimum annual investment of $100 million for ten consecutive years and a total investment of at least $1.25 billion within ten years of certification.

Renewable energy facilities associated with international operations centers must use at least 51% of their generated power for self-consumption within five years of operation.

ELIGIBILITY

New exemptions were added for peer-to-peer car sharing programs and shared vehicle owners, provided the program collects and remits applicable taxes.

Aircraft sales are now eligible for tax deductions if operational control is transferred to eligible persons for at least 50% of the aircraft's flight hours during a five-year recapture period.

DEFINITION

The definition of 'international operations center' was updated to explicitly require the facility to self-consume renewable energy from a qualified facility.

ENFORCEMENT

Liability for false certificates regarding vehicle sales deductions was clarified, making purchasers liable for the tax, penalty, and interest if they cannot prove the accuracy of the information provided.

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Full legislative history

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Key actions

Committee

May 4, 2026

Upper · Passed

upper

Apr 28, 2026

Upper · Passed

upper

1 primary · 1 co-sponsor