MS HB1703

Authorizes individual taxpayers in Mississippi's coast area (Hancock, Harrison, Jackson, Pearl River, Stone, and George Counties) to establish catastrophe savings accounts to cover insurance deductibles and uninsured losses from hurricanes, flooding, or catastrophic windstorms.

Excludes contributions, interest income, and qualified distributions from catastrophe savings accounts from state taxable gross income, subject to contribution limits ranging from $2,000 to $30,000 depending on insurance deductible amounts and self-insured status.

Imposes a 2.5% penalty tax on non-qualified distributions from catastrophe savings accounts, except when the account holder no longer owns coastal property or reaches age 70 (for self-insured accounts).

Allows individual taxpayers to deduct insurance premiums paid for hurricane, flood, and windstorm coverage on their legal residence in the coast area as an adjustment to gross income.

Takes effect January 1, 2010, with the Commissioner of Revenue authorized to promulgate implementing rules and regulations.