MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Ways and Means

By: Representatives Barnett (92nd), Chism, Clarke, Eads, Guice, Holloway, Malone, Martinson, McBride, Nicholson, Ryals, Thomas

AN ACT TO PROVIDE AN INCOME TAX CREDIT TO INDIVIDUAL NONBUSINESS TAXPAYERS WHO PAY PREMIUMS FOR LONG-TERM CARE SERVICE INSURANCE COVERAGE; TO LIMIT THE AMOUNT OF SUCH TAX CREDIT; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) As used in this act, the following words and phrases shall have the meanings ascribed in this section unless the context clearly requires otherwise:

(a) "Chronically ill individual" means any individual who has been certified by a licensed health care practitioner within the last twelve (12) months as:

(i) Being unable to perform, without substantial assistance from another individual, at least two (2) activities of daily living (eating, toileting, transferring, bathing, dressing or continence) for a period of at least ninety (90) days due to a loss of functional capacity;

(ii) Having a level of disability similar to the level of disability described in subparagraph (i); or

(iii) Requiring substantial supervision to protect such individual from threats to health and safety due to severe cognitive impairment.

(b) "Licensed health care practitioner" means any

physician, registered nurse or licensed social worker.

(c) "Long-term care service" means necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and maintenance or personal care services, which are required by a chronically ill individual, and are provided pursuant to a plan of care prescribed by a licensed health care practitioner.

(2) For any individual nonbusiness taxpayer paying premiums for long-term care service insurance coverage for the taxpayer or the taxpayer's spouse, parent, stepparent or child, a credit against the taxes imposed under this chapter shall be allowed in the amount provided in this section. The amount of the credit provided in this section shall not exceed the lesser of One Hundred Dollars ($100.00) or the amount of income tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under the state income tax laws, except credit for tax payments made by or on behalf of the taxpayer.

SECTION 2. Section 1 of this act shall be codified as a separate code section in Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 3. 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 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 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 4. This act shall take effect and be in force from and after January 1, 2001.