MISSISSIPPI LEGISLATURE
2016 Regular Session
To: Finance
By: Senator(s) Fillingane, Kirby, Carmichael
AN ACT TO AMEND SECTIONS 27-15-103 AND 27-15-109, MISSISSIPPI CODE OF 1972, TO PHASE IN A REDUCTION OF TAX RATE ON THE GROSS AMOUNT OF PREMIUMS COLLECTED BY CERTAIN INSURANCE COMPANIES FROM 3% TO 2% OVER A PERIOD OF 10 YEARS; 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, 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 * * * at the rate
provided for in subsection (2) of this section on 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 * * * that plan.
(2) The rate of tax under this section shall be as follows:
(a) For premiums received during calendar year 2017 and each calendar year before calendar year 2017, three percent (3%).
(b) For premiums received during calendar year 2018, two and nine-tenths percent (2.9%).
(c) For premiums received during calendar year 2019, two and eight-tenths percent (2.8%).
(d) For premiums received during calendar year 2020, two and seven-tenths percent (2.7%).
(e) For premiums received during calendar year 2021, two and six-tenths percent (2.6%).
(f) For premiums received during calendar year 2022, two and five-tenths percent (2.5%).
(g) For premiums received during calendar year 2023, two and four-tenths percent (2.4%).
(h) For premiums received during calendar year 2024, two and four-tenths percent (2.4%).
(i) For premiums received during calendar year 2025, two and three-tenths percent (2.3%).
(j) For premiums received during calendar year 2026, two and two-tenths percent (2.2%).
(k) For premiums received during calendar year 2027, two and one-tenth percent (2.1%).
(l) For premiums received during calendar year 2028 and each calendar year thereafter, two percent (2%).
(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 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.
( * * *4) The taxes * * * levied in this section and
imposed * * * shall be
reduced by the net amount of income tax paid to this state for the preceding
calendar year * * *; however, 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 * * * at the rate
provided for in subsection (2) of this section on the gross amount of
premiums collected by * * *
each domestic company on 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 such 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) The rate of tax under this section shall be as follows:
(a) For premiums received during calendar year 2017 and each calendar year before calendar year 2017, three percent (3%).
(b) For premiums received during calendar year 2018, two and nine-tenths percent (2.9%).
(c) For premiums received during calendar year 2019, two and eight-tenths percent (2.8%).
(d) For premiums received during calendar year 2020, two and seven-tenths percent (2.7%).
(e) For premiums received during calendar year 2021, two and six-tenths percent (2.6%).
(f) For premiums received during calendar year 2022, two and five-tenths percent (2.5%).
(g) For premiums received during calendar year 2023, two and four-tenths percent (2.4%).
(h) For premiums received during calendar year 2024, two and four-tenths percent (2.4%).
(i) For premiums received during calendar year 2025, two and three-tenths percent (2.3%).
(j) For premiums received during calendar year 2026, two and two-tenths percent (2.2%).
(k) For premiums received during calendar year 2027, two and one-tenth percent (2.1%).
(l) For premiums received during calendar year 2028 and each calendar year thereafter, two percent (2%).
(3) Except as * * * otherwise
provided in 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 * * * a sworn statement of all additional
retaliatory premium taxes paid by them to other states as a result of the * * * taxes imposed by Sections
27-15-103 through 27-15-117, itemized by states to which paid.
( * * *4) 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.
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 statewide privilege 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 statewide privilege 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, 2016.