Opinion 97 - 14
represents the views of the Office of the State Comptroller at the time it was rendered.
The opinion may no longer represent those views if, among other things, there have been
subsequent court cases or statutory amendments that bear on the issues discussed in the
FOREIGN FIRE INSURANCE TAXES -- Particular Uses (furniture and trophy case)
INSURANCE LAW, §§9104, 9105: Unless otherwise provided by special act, the members of a
volunteer fire department or, if the department is comprised of several companies, the
members of each company, may determine to use foreign fire insurance tax moneys to make
reasonable expenditures to purchase furniture for a recreation room and a trophy case for
a meeting room for department use.
You ask whether foreign fire insurance tax moneys may be expended by a volunteer fire
department to pay the cost of constructing a trophy case in the department's meeting room,
and to pay for furniture for the department's recreation room.
Sections 9104 and 9105 of the Insurance Law govern the use of foreign fire insurance tax
moneys except as otherwise provided in any special law(1).
These sections provide that the foreign fire insurance tax moneys of a fire department
consisting of a single fire company must be used for the benefit of the department, as
determined by the members of the department. Sections 9104 and 9105 also provide that the
foreign fire insurance tax moneys of a multi-company fire department must be turned over
to the companies comprising the department and used for the benefit of each company, as
determined by the members of the company. This requirement, however, does not preclude a
company from paying all or a portion of the tax to the fire department of which it is
This Office has expressed the opinion that foreign fire insurance tax moneys may not be
expended for illegal purposes or purposes contrary to
public policy (see e.g., 1995 Opns St Comp No. 95-14, p 29 and citations therein). We have
also concluded that the treasurer having custody of foreign fire insurance tax moneys
should not permit such moneys to be expended for a purpose which the treasurer, in good
faith, believes to be illegal or improper, even if the expenditure has been approved by a
majority of the membership, because the treasurer could be held liable for the expenditure
of such moneys for an illegal or improper purpose. Thus, except as provided by special act
of the State Legislature, foreign fire insurance tax moneys may be expended for any
purpose, other than an illegal purpose or a purpose contrary to public policy, which the
members of the fire department or company, as the case may be, determine to be for the
benefit of the fire department or company.
Based on the foregoing, with respect to the expenditure of foreign fire insurance tax
moneys in this instance, the members of the fire department or, if the fire department is
comprised of several companies, the members of each company, must determine how these
moneys are to be used for the benefit of the department or company. Should the members
decide to use these moneys to purchase furniture for a recreation room, or to construct a
trophy case in a meeting room, for department use, it is our opinion that reasonable
expenditures may be made for those purposes.
July 11, 1997
Stephen DeBoer, Treasurer
Tallman Fire Department
1. Typically, such special laws
are acts of the State Legislature incorporating an exempt volunteer firemen's benevolent
association and authorizing that association to receive and expend foreign fire insurance
tax moneys. For purposes of this opinion, we assume no special act is applicable.