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H. B. No. 868 *HR43/R68* ~ OFFICIAL ~ R3/5
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To: Insurance; Ways and
Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representatives Zuber, Turner
HOUSE BILL NO. 868
AN ACT TO AMEND SECTION 27-15-103, MISSISSIPPI CODE OF 1972, 1
TO EXCLUDE PREMIUMS ON INSURANCE COVERAGE FOR GOVERNMENTAL 2
ENTITIES FROM PRIVILEGE TAXES LEVIED ON FOREIGN INSURANCE 3
CARRIERS; TO AMEND SECTION 27-15-109, MISSISSIPPI CODE OF 1972, TO 4
EXCLUDE PREMIUMS ON INSURANCE COVERAGE FOR GOVERNMENTAL ENTITIES 5
FROM PRIVILEGE TAXES LEVIED ON DOMESTIC INSURANCE CARRIERS; AND 6
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 * * * 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 * * * the 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 * * * plan. 43
Furthermore, any foreign insurance carrier selected to furnish 44
service to a governmental entity of the State of Mississippi shall 45
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not be required to pay the annual license or privilege tax under 46
this section on the premiums collected for coverage under the 47
policies issued by the carrier. As used in this subsection, 48
"governmental entity" means any agency, department, institution or 49
political subdivision of the state. 50
(2) In the event that the Mississippi Supreme Court or 51
another court finally adjudicates that any tax levied prior to 52
July 1, 1985, under the provisions of this section was collected 53
unconstitutionally and that a liability for a credit or refund for 54
such collection has accrued, then the rate of tax set forth above 55
shall be increased to four percent (4%) for a period of six (6) 56
years beginning July 1 following such adjudication. 57
(3) The taxes herein levied and imposed for the calendar 58
year 1982 and all calendar years thereafter shall be reduced by 59
the net amount of income tax paid to this state for the preceding 60
calendar year, provided, in no event may the credit be taken more 61
than once. The credit herein authorized shall, in no event, be 62
greater than the premium tax due under this section; it being the 63
purpose and intent of this paragraph that whichever of the annual 64
insurance premium tax or the income tax is greater in amount shall 65
be paid. 66
SECTION 2. Section 27-15-109, Mississippi Code of 1972, is 67
amended as follows: 68
27-15-109. (1) Except as otherwise provided in Section 69
83-61-11, there is * * * levied and imposed upon each domestic 70
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company doing business in this state an annual tax of three 71
percent (3%) of the gross amount of premiums collected by such 72
domestic company on insurance policies and contracts written in, 73
or covering risks located in this state, except for premiums 74
received on policies issued to fund a retirement, thrift or 75
deferred compensation plan qualified under Section 401, Section 76
403 or Section 457 of the Federal Tax Code for federal tax 77
exemption. * * * However, * * * a domestic insurance company 78
against which is levied additional premium tax under retaliatory 79
laws of other states in which it does business, as a result of the 80
tax increase provided by Sections 27-15-103 through 27-15-117, may 81
deduct the total of such additional retaliatory tax from the state 82
income tax due by it to the State of Mississippi. The insurance 83
carriers selected to furnish service to the State of Mississippi, 84
under the State Employees Life and Health Insurance Plan, shall 85
not be required to pay the premium tax levied against insurance 86
companies under this section on the premiums collected for 87
coverage under the state employees plan. Furthermore, the 88
insurance carriers selected to furnish service to the governmental 89
entities of the State of Mississippi shall not be required to pay 90
the premium tax levied against insurance companies under this 91
section on the premiums collected for coverage under the policies 92
issued by the carrier. As used in this subsection, "governmental 93
entities" means any agency, department, institution or political 94
subdivision of the state. 95
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(2) Except as expressly provided by subsection (1) of this 96
section, all of the provisions of Sections 27-15-103 through 97
27-15-117 shall be applicable to such domestic insurance 98
companies. However, the statement filed with the State Tax 99
Commission by domestic insurance companies as provided in Section 100
27-15-107 shall include therein a sworn statement of all 101
additional retaliatory premium taxes paid by them to other states 102
as a result of the increase in premium taxes imposed by Sections 103
27-15-103 through 27-15-117, itemized by states to which paid. 104
(3) In the event that the Mississippi Supreme Court or 105
another court finally adjudicates that any tax levied prior to 106
July 1, 1985, under the provisions of this section was collected 107
unconstitutionally and that a liability for a credit or refund for 108
such collection has accrued, then the rate of tax set forth above 109
shall be increased to four percent (4%) for a period of six (6) 110
years beginning July 1 following such adjudication. 111
SECTION 3. Nothing in this act shall affect or defeat any 112
claim, assessment, appeal, suit, right or cause of action for 113
taxes due or accrued under the privilege tax laws before the date 114
on which this act becomes effective, whether such claims, 115
assessments, appeals, suits or actions have been begun before the 116
date on which this act becomes effective or are begun thereafter; 117
and the provisions of the privilege tax laws are expressly 118
continued in full force, effect and operation for the purpose of 119
the assessment, collection and enrollment of liens for any taxes 120
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ST: Insurance premium tax; exempt insurance
carriers furnishing services to governmental
entities.
due or accrued and the execution of any warrant under such laws 121
before the date on which this act becomes effective, and for the 122
imposition of any penalties, forfeitures or claims for failure to 123
comply with such laws. 124
SECTION 4. This act shall take effect and be in force from 125
and after July 1, 2026. 126