2007 Regular Session
To: Ways and Means
By: Representative Formby, Broomfield, Dedeaux, Ellington, Fredericks, Frierson, Hamilton (109th), Janus, Palazzo, Parker, Patterson, Peranich, Simpson, Upshaw, Wells-Smith, Zuber
AN ACT TO PROVIDE AN ANNUAL CREDIT AGAINST STATE INCOME TAXES TO CERTAIN TAXPAYERS IN THE AMOUNT OF THE INCREASED PREMIUMS PAID BY SUCH TAXPAYERS ANNUALLY TO THE MISSISSIPPI WINDSTORM UNDERWRITING ASSOCIATION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) There shall be allowed as a credit against the tax imposed by this chapter an amount equal to the applicable percentage of the excess of the annual premiums paid for policies issued or renewed on or after October 1, 2006, by or on behalf of a taxpayer for "essential property insurance," as defined in Section 83-34-1(a), in any "Coast area," as defined in Section 83-34-1(f), to the Mississippi Windstorm Underwriting Association over the amount of annual premiums that would have been paid to the Mississippi Windstorm Underwriting Association if such policy had been issued immediately prior to October 1, 2006. The amount of such increase shall be determined by the Department of Insurance and the State Tax Commission and published annually. The applicable percentage shall be one hundred percent (100%) for 2007 and 2008 if no premium was paid between October 1 and December 31, 2006, and shall decrease by twenty percent (20%) for each year thereafter such that no taxpayer may claim a credit for more than five (5) years.
(2) Premiums paid after October 1, 2006, and before January 1, 2007, shall be claimed and allowed on the first income tax return that is due on or after January 1, 2007.
(3) Premiums paid on or after January 1, 2007, shall be claimed and allowed on the first income tax return that is due in the year after the payment.
(4) Any tax credit claimed under this section but not used in any taxable year may be carried forward for three (3) consecutive years from the close of the tax year in which the credit was earned. The credit that may be utilized in any one (1) tax year shall be limited to an amount not greater than the total state income tax liability of the taxpayer for that year reduced by the sum of all other income tax credits allowable to the taxpayer, except credit for tax payments made by or on behalf of the taxpayer.
SECTION 2. Section 1 of this act shall be codified in Chapter 7, Title 27, Mississippi Code of 1972.
SECTION 3. This act shall take effect and be in force from and after January 1, 2007.