MS SB2811

Authorizes Mississippi homeowners to establish catastrophe savings accounts to cover insurance deductibles and uninsured portions of windstorm damage (hurricanes, tornadoes, hail, etc.) to their homesteads.

Allows individual taxpayers an income tax deduction for contributions to catastrophe savings accounts and excludes all interest earned in such accounts from gross income.

Limits contributions based on insurance deductible amount: $2,000 maximum for deductibles under $1,000; up to $15,000 or twice the deductible (whichever is less) for higher deductibles; $250,000 maximum for self-insured individuals.

Requires distributions from catastrophe savings accounts to be included in taxable income unless used for qualified catastrophe expenses, with an additional 2.5% tax penalty on non-qualified distributions (exceptions for account owners age 70+ or those no longer owning a homestead).

Amends Mississippi income tax law to add catastrophe savings account provisions, effective January 1, 2010.