Bill Text: MS HB868 | 2026 | Regular Session | Introduced
Bill Title: Insurance premium tax; exempt insurance carriers furnishing services to governmental entities.
Sponsorship: Partisan Bill (Republican 2)
Status: (Failed) 2026-02-25 - Died In Committee [HB868 Detail]
Download: Mississippi-2026-HB868-Introduced.html
MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Insurance; Ways and Means
By: Representative Zuber
House Bill 868
AN ACT TO AMEND SECTION 27-15-103, MISSISSIPPI CODE OF 1972, TO EXCLUDE PREMIUMS ON INSURANCE COVERAGE FOR GOVERNMENTAL ENTITIES FROM PRIVILEGE TAXES LEVIED ON FOREIGN INSURANCE CARRIERS; TO AMEND SECTION 27-15-109, MISSISSIPPI CODE OF 1972, TO EXCLUDE PREMIUMS ON INSURANCE COVERAGE FOR GOVERNMENTAL ENTITIES FROM PRIVILEGE TAXES LEVIED ON DOMESTIC INSURANCE CARRIERS; 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 * * * 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 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 herein 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. Furthermore, any foreign
insurance carrier selected to furnish service to a governmental entity of the
State of Mississippi shall not be required to pay the annual license or
privilege tax under this section on the premiums collected for coverage under
the policies issued by the carrier. As used in this subsection, "governmental
entity" means any agency, department, institution or political subdivision
of the state.
(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 herein levied 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 herein authorized shall, in no event, be greater than the premium tax due under this section; it being the purpose and intent of this paragraph 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 * * * 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 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. Furthermore, the insurance
carriers selected to furnish service to the governmental entities of the State
of Mississippi shall not be required to pay the premium tax levied against
insurance companies under this section on the premiums collected for coverage
under the policies issued by the carrier. As used in this subsection, "governmental
entities" means any agency, department, institution or political
subdivision of the state.
(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 State Tax Commission 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 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 4. This act shall take effect and be in force from and after July 1, 2026.
