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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Zuber
HOUSE BILL NO. 1689
AN ACT TO AMEND SECTION 27-15-103, MISSISSIPPI CODE OF 1972, 1
TO EXCLUDE PREMIUMS ON PROPERTY AND CASUALTY INSURANCE COVERAGE 2
FOR SCHOOL DISTRICTS FROM PRIVILEGE TAXES LEVIED ON FOREIGN 3
INSURANCE CARRIERS; TO AMEND SECTION 27-15-109, MISSISSIPPI CODE 4
OF 1972, TO EXCLUDE PREMIUMS ON PROPERTY AND CASUALTY INSURANCE 5
COVERAGE FOR SCHOOL DISTRICTS FROM PRIVILEGE TAXES LEVIED ON 6
DOMESTIC INSURANCE CARRIERS; AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Section 27-15-103, Mississippi Code of 1972, is 9
amended as follows: 10
27-15-103. (1) Except as otherwise provided in Section 11
83-61-11, in addition to the license tax now or hereafter provided 12
by law, which tax shall be paid when the company enters or is 13
admitted to do business in this state, there is hereby levied and 14
imposed upon all foreign insurance companies and associations, 15
including life insurance companies and associations, health, 16
accident and industrial insurance companies and associations, fire 17
and casualty insurance companies and associations, and all other 18
foreign insurance companies and associations of every kind and 19
description, an additional annual license or privilege tax of 20
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three percent (3%) of the gross amount of premium receipts 21
received from, and on insurance policies and contracts written in, 22
or covering risks located in this state, except for premiums 23
received on policies issued to fund a deferred compensation plan 24
qualified under Section 457 of the Federal Tax Code for federal 25
tax exemption. In determining said amount of premiums, there 26
shall be deducted therefrom premiums received for reinsurance from 27
companies authorized to do business in this state, cash dividends 28
paid under policy contracts in this state, and premiums returned 29
to policyholders and cancellations on accounts of policies not 30
taken, and, in the case of mutual insurance companies (including 31
interinsurance and reciprocal exchanges, but not including mutual 32
life, accident, health or industrial insurance companies) any 33
refund made or credited to the policyholder other than for losses. 34
The term "premium" as used herein shall also include policy fees, 35
membership fees, and all other fees collected by the companies. 36
No credit or deduction from gross premium receipts shall be 37
allowed for any commission, fee or compensation paid to any agent, 38
solicitor or representative. * * * However, * * * any foreign 39
insurance carrier selected to furnish service to the State of 40
Mississippi under the State Employees Life and Health Insurance 41
Plan shall not be required to pay the annual license or privilege 42
tax on the premiums collected for coverage under the said plan. 43
Furthermore, any foreign insurance carrier selected to furnish 44
service to a school district in the State of Mississippi shall not 45
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be required to pay the annual license or privilege tax under this 46
section on the premiums collected for property and casualty 47
coverage under the policies issued by the carrier for the school 48
district. 49
(2) In the event that the Mississippi Supreme Court or 50
another court finally adjudicates that any tax levied prior to 51
July 1, 1985, under the provisions of this section was collected 52
unconstitutionally and that a liability for a credit or refund for 53
such collection has accrued, then the rate of tax set forth above 54
shall be increased to four percent (4%) for a period of six (6) 55
years beginning July 1 following such adjudication. 56
(3) The taxes herein levied and imposed for the calendar 57
year 1982 and all calendar years thereafter shall be reduced by 58
the net amount of income tax paid to this state for the preceding 59
calendar year, provided, in no event may the credit be taken more 60
than once. The credit herein authorized shall, in no event, be 61
greater than the premium tax due under this section; it being the 62
purpose and intent of this paragraph that whichever of the annual 63
insurance premium tax or the income tax is greater in amount shall 64
be paid. 65
SECTION 2. Section 27-15-109, Mississippi Code of 1972, is 66
amended as follows: 67
27-15-109. (1) Except as otherwise provided in Section 68
83-61-11, there is hereby levied and imposed upon each domestic 69
company doing business in this state an annual tax of three 70
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percent (3%) of the gross amount of premiums collected by such 71
domestic company on insurance policies and contracts written in, 72
or covering risks located in this state, except for premiums 73
received on policies issued to fund a retirement, thrift or 74
deferred compensation plan qualified under Section 401, Section 75
403 or Section 457 of the Federal Tax Code for federal tax 76
exemption. Provided, however, that a domestic insurance company 77
against which is levied additional premium tax under retaliatory 78
laws of other states in which it does business, as a result of the 79
tax increase provided by Sections 27-15-103 through 27-15-117, may 80
deduct the total of such additional retaliatory tax from the state 81
income tax due by it to the State of Mississippi. The insurance 82
carriers selected to furnish service to the State of Mississippi, 83
under the State Employees Life and Health Insurance Plan, shall 84
not be required to pay the premium tax levied against insurance 85
companies under this section on the premiums collected for 86
coverage under the state employees plan. Furthermore, any 87
insurance carrier selected to furnish service to the school 88
district in the State of Mississippi shall not be required to pay 89
the premium tax levied against insurance companies under this 90
section on the premiums collected for property and casualty 91
coverage under the policies issued by the carrier for the school 92
district. 93
(2) Except as expressly provided by subsection (1) of this 94
section, all of the provisions of Sections 27-15-103 through 95
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ST: Insurance premium tax; exempt property and
casualty policies covering school districts.
27-15-117 shall be applicable to such domestic insurance 96
companies. However, the statement filed with the State Tax 97
Commission by domestic insurance companies as provided in Section 98
27-15-107 shall include therein a sworn statement of all 99
additional retaliatory premium taxes paid by them to other states 100
as a result of the increase in premium taxes imposed by Sections 101
27-15-103 through 27-15-117, itemized by states to which paid. 102
(3) In the event that the Mississippi Supreme Court or 103
another court finally adjudicates that any tax levied prior to 104
July 1, 1985, under the provisions of this section was collected 105
unconstitutionally and that a liability for a credit or refund for 106
such collection has accrued, then the rate of tax set forth above 107
shall be increased to four percent (4%) for a period of six (6) 108
years beginning July 1 following such adjudication. 109
SECTION 3. This act shall take effect and be in force from 110
and after July 1, 2026. 111