MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Insurance; Finance

By: Senator(s) Kirby

AN ACT TO CREATE A NEW CODE SECTION TO BE CODIFIED AS SECTION 83-23-116, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A MEMBER INSURER OF THE MISSISSIPPI INSURANCE GUARANTY ASSOCIATION MAY OFFSET ITS ASSESSMENT AGAINST ITS PREMIUM, FRANCHISE OR INCOME TAX LIABILITY; AND FOR RELATED PURPOSES.

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

SECTION 1. The following shall be codified as Section 83-23-116, Mississippi Code of 1972:

83-23-116. (1) From and after July 1, 2000, a member insurer may offset against its (premiums, franchise or income) tax liability (or liabilities) to this state an assessment described in Section 83-23-115(1)(c) to the extent of twenty percent (20%) of the amount of such assessment, if any, for each year over the next five (5) succeeding years. However, if the offset is less than twenty percent (20%), any unused balance may be carried over to any succeeding year until such time as the offset provided herein is fully used. In the event a member insured shall cease doing business, any uncredited assessment may be credited against its (premium, franchise or income) tax liability (or liabilities) for the year it ceases doing business.

(2) Any sums which are refunded pursuant to Section 83-23-115(2)(f) from the association to member insurers, and which have theretofore been offset by contributing insurers against (premium, franchise or income) taxes as provided in subsection (1) of this section, and are not then needed for purposes of this chapter, shall be paid in such manner as the tax authorities may require. The association shall notify the commissioner that such refunds have been made.

SECTION 2. This act shall take effect and be in force from and after July 1, 2000.