MISSISSIPPI LEGISLATURE
REGULAR SESSION 2016
By:
To:
Senator(s) Fillingane, Kirby, Carmichael
Finance
SENATE BILL NO. 2864
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AN ACT TO AMEND SECTIONS 27-15-103 AND 27-15-109, MISSISSIPPI
CODE OF 1972, TO PHASE IN A REDUCTION OF TAX RATE ON THE GROSS
AMOUNT OF PREMIUMS COLLECTED BY CERTAIN INSURANCE COMPANIES FROM
3% TO 2% OVER A PERIOD OF 10 YEARS; AND FOR RELATED PURPOSES.
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
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SECTION 1.
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amended as follows:
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27-15-103.
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Section 27-15-103, Mississippi Code of 1972, is
(1)
Except as otherwise provided in Section
83-61-11, in addition to the license tax now or hereafter provided
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by law, which tax shall be paid when the company enters or is
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admitted to do business in this state, there is hereby levied and
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imposed upon all foreign insurance companies and associations,
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including life insurance companies and associations, health,
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accident and industrial insurance companies and associations, fire
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and casualty insurance companies and associations, and all other
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foreign insurance companies and associations of every kind and
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description, an additional annual license or privilege tax * * *
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at the rate provided for in subsection (2) of this section on the
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gross amount of premium receipts received from, and on insurance
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policies and contracts written in, or covering risks located in
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this state, except for premiums received on policies issued to
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fund a deferred compensation plan qualified under Section 457 of
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the Federal Tax Code for federal tax exemption.
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determining * * * the amount of premiums, there shall be deducted
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therefrom premiums received for reinsurance from companies
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authorized to do business in this state, cash dividends paid under
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policy contracts in this state, and premiums returned to
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policyholders and cancellations on accounts of policies not taken,
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and, in the case of mutual insurance companies (including
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interinsurance and reciprocal exchanges, but not including mutual
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life, accident, health or industrial insurance companies) any
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refund made or credited to the policyholder other than for losses.
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The term "premium" as used * * * in this section shall also
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include policy fees, membership fees, and all other fees collected
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by the companies.
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receipts shall be allowed for any commission, fee or compensation
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paid to any agent, solicitor or representative. * * *
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However, * * * any foreign insurance carrier selected to furnish
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service to the State of Mississippi under the State Employees Life
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and Health Insurance Plan shall not be required to pay the annual
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license or privilege tax on the premiums collected for coverage
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under * * * that plan.
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(2)
In
No credit or deduction from gross premium
The rate of tax under this section shall be as follows:
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(a)
For premiums received during calendar year 2017 and
each calendar year before calendar year 2017, three percent (3%).
(b)
For premiums received during calendar year 2018,
two and nine-tenths percent (2.9%).
(c)
For premiums received during calendar year 2019,
two and eight-tenths percent (2.8%).
(d)
For premiums received during calendar year 2020,
two and seven-tenths percent (2.7%).
(e)
For premiums received during calendar year 2021,
two and six-tenths percent (2.6%).
(f)
For premiums received during calendar year 2022,
two and five-tenths percent (2.5%).
(g)
For premiums received during calendar year 2023,
two and four-tenths percent (2.4%).
(h)
For premiums received during calendar year 2024,
two and four-tenths percent (2.4%).
(i)
For premiums received during calendar year 2025,
two and three-tenths percent (2.3%).
(j)
For premiums received during calendar year 2026,
two and two-tenths percent (2.2%).
(k)
For premiums received during calendar year 2027,
two and one-tenth percent (2.1%).
(l)
For premiums received during calendar year 2028 and
each calendar year thereafter, two percent (2%).
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(3)
In the event that the Mississippi Supreme Court or
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another court finally adjudicates that any tax levied prior to
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July 1, 1985, under the provisions of this section was collected
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unconstitutionally and that a liability for a credit or refund for
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such collection has accrued, then the rate of tax set forth above
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shall be increased to four percent (4%) for a period of six (6)
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years beginning July 1 following such adjudication.
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( * * *4)
The taxes * * * levied in this section and
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imposed * * * shall be reduced by the net amount of income tax
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paid to this state for the preceding calendar year * * *; however,
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in no event may the credit be taken more than once.
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credit * * * authorized in this subsection shall, in no event, be
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greater than the premium tax due under this section; it being the
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purpose and intent of this * * * subsection that whichever of the
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annual insurance premium tax or the income tax is greater in
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amount shall be paid.
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SECTION 2.
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amended as follows:
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27-15-109.
The
Section 27-15-109, Mississippi Code of 1972, is
(1)
Except as otherwise provided in Section
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83-61-11, there is hereby levied and imposed upon each domestic
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company doing business in this state an annual tax * * * at the
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rate provided for in subsection (2) of this section on the gross
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amount of premiums collected by * * * each domestic company on
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insurance policies and contracts written in, or covering risks
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located in this state, except for premiums received on policies
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issued to fund a retirement, thrift or deferred compensation plan
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qualified under Section 401, Section 403 or Section 457 of the
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Federal Tax Code for federal tax exemption. * * *
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a domestic insurance company against which is levied additional
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premium tax under retaliatory laws of other states in which it
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does business, as a result of the tax increase provided by
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Sections 27-15-103 through 27-15-117, may deduct the total of such
However, * * *
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additional retaliatory tax from the state income tax due by it to
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the State of Mississippi.
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furnish service to the State of Mississippi, under the State
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Employees Life and Health Insurance Plan, shall not be required to
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pay the premium tax levied against insurance companies under this
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section on the premiums collected for coverage under the state
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employees plan.
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(2)
The insurance carriers selected to
The rate of tax under this section shall be as follows:
(a)
For premiums received during calendar year 2017 and
each calendar year before calendar year 2017, three percent (3%).
(b)
For premiums received during calendar year 2018,
two and nine-tenths percent (2.9%).
(c)
For premiums received during calendar year 2019,
two and eight-tenths percent (2.8%).
(d)
For premiums received during calendar year 2020,
two and seven-tenths percent (2.7%).
(e)
For premiums received during calendar year 2021,
two and six-tenths percent (2.6%).
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(f)
two and five-tenths percent (2.5%).
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(g)
(h)
(i)
(j)
(k)
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For premiums received during calendar year 2027,
two and one-tenth percent (2.1%).
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For premiums received during calendar year 2026,
two and two-tenths percent (2.2%).
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For premiums received during calendar year 2025,
two and three-tenths percent (2.3%).
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For premiums received during calendar year 2024,
two and four-tenths percent (2.4%).
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For premiums received during calendar year 2023,
two and four-tenths percent (2.4%).
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For premiums received during calendar year 2022,
(l)
For premiums received during calendar year 2028 and
each calendar year thereafter, two percent (2%).
(3)
Except as * * * otherwise provided in this section, all
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of the provisions of Sections 27-15-103 through 27-15-117 shall be
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applicable to such domestic insurance companies.
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statement filed with the * * * Department of Revenue by domestic
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insurance companies as provided in Section 27-15-107 shall
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include * * * a sworn statement of all additional retaliatory
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premium taxes paid by them to other states as a result of
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the * * * taxes imposed by Sections 27-15-103 through 27-15-117,
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itemized by states to which paid.
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( * * *4)
However, the
In the event that the Mississippi Supreme Court or
another court finally adjudicates that any tax levied prior to
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July 1, 1985, under the provisions of this section was collected
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unconstitutionally and that a liability for a credit or refund for
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such collection has accrued, then the rate of tax set forth above
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shall be increased to four percent (4%) for a period of six (6)
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years beginning July 1 following such adjudication.
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SECTION 3.
Nothing in this act shall affect or defeat any
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claim, assessment, appeal, suit, right or cause of action for
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taxes due or accrued under the statewide privilege tax laws before
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the date on which this act becomes effective, whether such claims,
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assessments, appeals, suits or actions have been begun before the
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date on which this act becomes effective or are begun thereafter;
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and the provisions of the statewide privilege tax laws are
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expressly continued in full force, effect and operation for the
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purpose of the assessment, collection and enrollment of liens for
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any taxes due or accrued and the execution of any warrant under
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such laws before the date on which this act becomes effective, and
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for the imposition of any penalties, forfeitures or claims for
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failure to comply with such laws.
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SECTION 4.
This act shall take effect and be in force from
and after January 1, 2016.
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ST: Insurance premium tax; phase in a reduction
over a period of 10 years.
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