House Bill 1134 Summary

• Authorizes Mississippi taxpayers to establish catastrophe savings accounts to pay insurance deductibles and uninsured losses from hurricanes, floods, windstorms, or other catastrophic events to their primary residence.

• Excludes contributions to catastrophe savings accounts, interest earned on the accounts, and distributions used for qualified catastrophe expenses from state taxable gross income.

• Imposes contribution limits based on insurance deductible amounts: $2,000 for deductibles of $1,000 or less, up to $15,000 for higher deductibles, and up to $350,000 for self-insured individuals.

• Requires a 2.5% penalty tax on distributions not used for qualified catastrophe expenses, unless the taxpayer no longer owns a homestead-exempt residence or is age 70 or older.

• Protects catastrophe savings account assets from attachment, levy, garnishment, or legal process, and takes effect January 1, 2015.