House Bill 1627

AN ACT TO AMEND SECTION 83-21-25, MISSISSIPPI CODE OF 1972, TO REQUIRE CERTAIN INSURANCE AGENTS TO REPORT TO THE STATE TAX COMMISSION THE AMOUNT OF GROSS PREMIUMS RECEIVED FOR SURPLUS LINES INSURANCE; TO PROVIDE THAT THE TAX IMPOSED ON SUCH INSURANCE PREMIUMS SHALL BE COLLECTED BY THE STATE TAX COMMISSION; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 83-21-25, Mississippi Code of 1972, is amended as follows:

83-21-25. The agent so licensed shall report under oath to the Commissioner of Insurance and the State Tax Commission, within thirty (30) days from the first of January and July of each year, the amount of gross premiums received by him for such insurance in nonlicensed insurers, and shall pay to the State Tax Commission a tax of four percent (4%) thereon. The term "gross premiums" shall mean the total gross amount of premiums received on each and every insurance, less returned premiums. In default of the payment of any sum which may be due the state under this law, the State Tax Commission may use the administrative provisions of the Mississippi Sales Tax Law to collect any such tax, penalties and interest due. The agent so licensed shall keep a separate record of all transactions, as herein provided, open at all times to the inspection of the Commissioner of Insurance and the State Tax Commission. The agent so licensed may designate another agent that actually procured the insurance from the nonlicensed insurer to report and pay, on behalf of the agent so licensed, to the State Tax Commission the tax due the state under this law. The agent designated to pay the tax shall be deemed to have the same obligations and responsibilities for reporting and paying the tax due the state on the insurance procured from the nonlicensed insurer as the agent who was initially responsible for reporting and paying the tax, and the State Tax Commission may use the administrative provisions of the Mississippi Sales Tax Law to collect any tax, penalties and interest assessed against such agent designated to pay the tax in the event such agent is in default of any sum which is due the state for which the designated agent is responsible or obligated to pay. The monies collected under this section shall be deposited into the State General Fund.

SECTION 2. This act shall take effect and be in force from and after July 1, 2004.