House Bill 89 Summary

• Authorizes establishment of "catastrophe savings accounts" by Mississippi residents in six coastal counties (Hancock, Harrison, Jackson, Pearl River, Stone, George) to pay insurance deductibles and uninsured losses from hurricanes, flooding, or catastrophic windstorms.

• Excludes contributions, interest earned, and qualified distributions from catastrophe savings accounts from state taxable gross income; accounts are protected from seizure, attachment, levy, or garnishment.

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

• Contribution limits vary by insurance status: $2,000 for deductibles under $1,000; up to $15,000 for larger deductibles; and $30,000 for self-insured individuals (not exceeding property value).

• Allows individuals to deduct premiums paid for hurricane, flood, or windstorm insurance covering coastal residences as an adjustment to gross income for state tax purposes.