2007 Regular Session
To: Insurance; Ways and Means
By: Representative Hines, Fleming, Mayo
AN ACT TO IMPOSE UPON INSURANCE COMPANIES DOING BUSINESS IN THE STATE AN ANNUAL TAX ON THE PREMIUMS COLLECTED ON HEALTH INSURANCE POLICIES AND CONTRACTS OF THE COMPANY WRITTEN IN OR COVERING RISKS LOCATED IN THIS STATE; TO PROVIDE THAT THE TAX SHALL BE AT A RATE DETERMINED BY THE COMMISSIONER OF INSURANCE THAT WILL GENERATE PROCEEDS EQUAL TO $5,000,000.00 ANNUALLY; TO PROVIDE THAT THE PROCEEDS GENERATED BY THE TAX SHALL BE DEPOSITED INTO THE MISSISSIPPI BURN CARE FUND; TO AUTHORIZE INSURANCE COMPANIES THAT ARE SUBJECT TO THE TAX TO COLLECT A PORTION OF THE AMOUNT OF THE TAX FROM THE HEALTH INSURANCE POLICYHOLDERS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. In addition to any other taxes imposed by law, there is levied and imposed upon each domestic insurance company and foreign insurance company doing business in the state an annual tax on the gross amount of premiums collected on health insurance policies and contracts of the company written in or covering risks located in this state. The tax imposed by this section shall be at a rate determined by the Commissioner of Insurance that will generate proceeds equal to Five Million Dollars ($5,000,000.00) annually. The tax rate shall be uniform on all insurance companies that are subject to the tax, and shall be adjusted annually by the Commissioner of Insurance as necessary to generate the amount of proceeds as required by this section. All of the proceeds generated by the tax imposed by this section shall be deposited into the Mississippi Burn Care Fund created in Section 7-9-70.
Insurance companies that are subject to the tax under this section may collect a portion of the amount of the tax from the health insurance policyholders, but not more than Three Dollars ($3.00) for each person who is insured under the policy.
SECTION 2. This act shall take effect and be in force from and after July 1, 2007.