MISSISSIPPI LEGISLATURE
2015 Regular Session
To: Finance
By: Senator(s) Burton
AN ACT TO AMEND SECTION 27-15-103, MISSISSIPPI CODE OF 1972, TO IMPOSE THE INSURANCE PREMIUM TAX ON FOREIGN PERSONAL SURETY COMPANIES; TO AMEND SECTION 27-15-109, MISSISSIPPI CODE OF 1972, TO IMPOSE THE INSURANCE PREMIUM TAX ON THE GROSS AMOUNT OF PREMIUMS COLLECTED BY DOMESTIC COMPANIES ON PERSONAL SURETY BAIL BONDS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-15-103, Mississippi Code of 1972, is amended as follows:
27-15-103. (1) Except as
otherwise provided in Section 83-61-11, in addition to the license tax now or
hereafter provided by law, which tax shall be paid when the company enters or
is admitted to do business in this state, there is hereby levied and imposed
upon all foreign insurance companies and associations, including life insurance
companies and associations, personal surety companies, health, accident
and industrial insurance companies and associations, fire and casualty
insurance companies and associations, and all other foreign insurance companies
and associations of every kind and description, an additional annual license or
privilege tax of three percent (3%) of the gross amount of premium receipts
received from, and on insurance policies and contracts written in, or covering
risks located in this state, except for premiums received on policies issued to
fund a deferred compensation plan qualified under Section 457 of the Federal
Tax Code for federal tax exemption. In determining * * * the amount of premiums, there shall
be deducted therefrom premiums received for reinsurance from companies
authorized to do business in this state, cash dividends paid under policy
contracts in this state, and premiums returned to policyholders and
cancellations on accounts of policies not taken, and, in the case of mutual
insurance companies (including interinsurance and reciprocal exchanges, but not
including mutual life, accident, health or industrial insurance companies) any
refund made or credited to the policyholder other than for losses. The term
"premium" as used * * * in this section shall also
include policy fees, membership fees, and all other fees collected by the
companies. No credit or deduction from gross premium receipts shall be allowed
for any commission, fee or compensation paid to any agent, solicitor or
representative. * * *
However, * * *
any foreign insurance carrier selected to furnish service to the State of
Mississippi under the State Employees Life and Health Insurance Plan shall not
be required to pay the annual license or privilege tax on the premiums
collected for coverage under the * * * plan.
(2) In the event that the Mississippi Supreme Court or another court finally adjudicates that any tax levied prior to July 1, 1985, under the provisions of this section was collected unconstitutionally and that a liability for a credit or refund for such collection has accrued, then the rate of tax set forth above shall be increased to four percent (4%) for a period of six (6) years beginning July 1 following such adjudication.
(3) The taxes * * * levied in this section and
imposed for the calendar year 1982 and all calendar years thereafter shall be
reduced by the net amount of income tax paid to this state for the preceding
calendar year, provided, in no event may the credit be taken more than once.
The credit * * *
authorized in this subsection shall, in no event, be greater than the
premium tax due under this section; it being the purpose and intent of this * * * subsection that whichever of
the annual insurance premium tax or the income tax is greater in amount shall
be paid.
SECTION 2. Section 27-15-109, Mississippi Code of 1972, is amended as follows:
27-15-109. (1) Except as
otherwise provided in Section 83-61-11, there is hereby levied and imposed upon
each domestic company doing business in this state an annual tax of three
percent (3%) of the gross amount of premiums collected by such domestic company
on personal surety bail bonds and insurance policies and contracts
written in, or covering risks located in this state, except for premiums
received on policies issued to fund a retirement, thrift or deferred
compensation plan qualified under Section 401, Section 403 or Section 457 of
the Federal Tax Code for federal tax exemption. * * * However, * * * a domestic insurance company against which
is levied additional premium tax under retaliatory laws of other states in
which it does business, as a result of the tax increase provided by Sections 27-15-103
through 27-15-117, may deduct the total of * * * the additional retaliatory tax from
the state income tax due by it to the State of Mississippi. The insurance
carriers selected to furnish service to the State of Mississippi, under the
State Employees Life and Health Insurance Plan, shall not be required to pay
the premium tax levied against insurance companies under this section on the
premiums collected for coverage under the state employees plan.
(2) Except as expressly
provided by subsection (1) of this section, all of the provisions of Sections
27-15-103 through 27-15-117 shall be applicable to such domestic insurance
companies. However, the statement filed with the * * * Department of Revenue
by domestic insurance companies as provided in Section 27-15-107 shall include
therein a sworn statement of all additional retaliatory premium taxes paid by
them to other states as a result of the increase in premium taxes imposed by
Sections 27-15-103 through 27-15-117, itemized by states to which paid.
(3) In the event that the
Mississippi Supreme Court or another court finally adjudicates that any tax
levied prior to July 1, 1985, under the provisions of this section was
collected unconstitutionally and that a liability for a credit or refund for * * * the collection has accrued, then
the rate of tax set forth above shall be increased to four percent (4%) for a
period of six (6) years beginning July 1 following such adjudication.
SECTION 3. This act shall take effect and be in force from and after July 1, 2015.