Bill Text: MS SB2792 | 2015 | Regular Session | Introduced

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Bill Title: Insurance premium tax; impose on domestic personal surety bail bonds and foreign personal surety companies.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2015-02-25 - Died In Committee [SB2792 Detail]

Download: Mississippi-2015-SB2792-Introduced.html

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MISSISSIPPI LEGISLATURE

2015 Regular Session

To: Finance

By: Senator(s) Burton

Senate Bill 2792

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 * * *said 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 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. * * *Provided,  However, * * *that 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 * * *said 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 * * *herein 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 * * *herein 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 * * *paragraph 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. * * *Provided,  However, * * *that 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 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 * * *State Tax Commission 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 * * *such 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.

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