MS SB2864

Phases in a reduction of the insurance premium tax rate on foreign and domestic insurance companies from 3% to 2% over 10 years beginning January 1, 2016.

Tax rate decreases annually by 0.1% per year from 2018 through 2027, with rates of 2.9% (2018), 2.8% (2019), 2.7% (2020), 2.6% (2021), 2.5% (2022), 2.4% (2023-2024), 2.3% (2025), 2.2% (2026), and 2.1% (2027).

Final tax rate reaches 2% for premiums received during calendar year 2028 and thereafter.

Maintains current exemptions for state employee insurance plan premiums and retirement/deferred compensation plan policies under federal tax code sections 401, 403, and 457.

Applies identical rate reduction schedules to both Sections 27-15-103 (foreign insurance companies) and 27-15-109 (domestic insurance companies).