MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Ways and Means

By: Representatives Malone, Compretta, Guice, Moak, Horne, Robinson (84th), Reynolds, Simmons, Moore, Howell, Smith (35th), Dedeaux, Franks

AN ACT TO AMEND SECTION 27-7-18, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT CERTAIN AMOUNTS PAID BY A SELF-EMPLOYED INDIVIDUAL FOR INSURANCE WHICH CONSTITUTES MEDICAL CARE FOR THE TAXPAYER, HIS SPOUSE AND DEPENDENTS SHALL BE ALLOWED AS AN ADJUSTMENT TO GROSS INCOME UNDER THE MISSISSIPPI INCOME TAX LAW UNDER CERTAIN CIRCUMSTANCES; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-7-18, Mississippi Code of 1972, is amended as follows:

27-7-18. (1) Alimony payments. In the case of a person described in Section 27-7-15(2)(e), there shall be allowed as a deduction from gross income amounts paid as periodic payments to the extent of such amounts as are includible in the gross income of the spouse as provided in Section 27-7-15(2)(e), payment of which is made within the person's taxable year.

(2) Unreimbursed moving expenses incurred after December 31, 1994, are deductible as an adjustment to gross income in accordance with provisions of the United States Internal Revenue Code, and rules, regulations and revenue procedures thereunder relating to moving expenses, not in direct conflict with the provisions of the Mississippi Income Tax Law.

(3) Amounts paid in the calendar year 1999, by a self-employed individual for insurance which constitute medical care for the taxpayer, his spouse and dependents, are deductible as an adjustment to gross income in accordance with provisions of the United States Internal Revenue Code, and rules, regulations and revenue procedures thereunder relating to such payments, not in direct conflict with the provisions of the Mississippi Income Tax Law. For the calendar year 2000, and each calendar year thereafter, such payments made in a calendar year shall be deductible as an adjustment to gross income at the rate provided under the United States Internal Revenue Code, and rules, regulations and revenue procedures thereunder relating to such payments, when such adjustment is fully implemented thereunder.

SECTION 2. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax or franchise tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax or franchise tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.

SECTION 3. This act shall take effect and be in force from and after January 1, 1999.