MS SB2250

Authorizes Mississippi taxpayers to establish catastrophe savings accounts to pay insurance deductibles and uninsured losses from hurricanes, flooding, or windstorms affecting their primary residence in coastal areas.

Excludes contributions, interest income, and qualified distributions from catastrophe savings accounts from state taxable gross income for account holders.

Imposes a 2.5% penalty tax on non-qualified distributions (those not used for catastrophe expenses) unless the account holder no longer owns a coastal residence or is age 70 or older.

Sets contribution limits: $2,000 for deductibles under $1,000; up to $15,000 for larger deductibles; and up to $250,000 for self-insured individuals.

Protects catastrophe savings account assets from seizure through execution, attachment, levy, or garnishment under Mississippi law.