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| Public Act 098-1169 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Insurance Code is amended by | ||||
changing Sections 409 and 444 as follows:
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(215 ILCS 5/409) (from Ch. 73, par. 1021)
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Sec. 409. Annual privilege tax payable by
companies. | ||||
(1) As of January 1, 1999 for all health maintenance | ||||
organization premiums
written; as of July 1, 1998 for all | ||||
premiums written as accident and health
business, voluntary | ||||
health service plan business, dental service plan business,
or | ||||
limited health service organization business; and as of January | ||||
1, 1998
for all other types of insurance premiums written, | ||||
every company doing any form
of insurance business in this
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State, including, but not limited to, every risk retention | ||||
group, and excluding
all fraternal benefit societies, all farm | ||||
mutual companies, all religious
charitable risk pooling | ||||
trusts, and excluding all statutory residual market and
special | ||||
purpose entities in which companies are statutorily required to
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participate, whether incorporated or otherwise, shall pay, for | ||||
the privilege of
doing business in this State, to the Director | ||||
for the State treasury a State
tax equal to 0.5% of the net | ||||
taxable premium written, together with any amounts
due under | ||||
Section 444 of this Code, except that the tax to be paid on any
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premium derived from any accident and health insurance or on | ||
any insurance
business written by any company operating as a | ||
health maintenance organization,
voluntary health service | ||
plan, dental service plan, or limited health service
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organization shall be equal to 0.4% of such net taxable premium | ||
written,
together with any amounts due under Section 444. Upon | ||
the failure of any
company to pay any such tax due, the | ||
Director may, by order, revoke or
suspend the company's | ||
certificate of authority after giving 20 days written
notice to | ||
the company, or commence proceedings for the suspension of | ||
business
in this State under the procedures set forth by | ||
Section 401.1 of this Code.
The gross taxable premium written | ||
shall be the gross amount of premiums
received on direct | ||
business during the calendar year on contracts covering
risks | ||
in this State, except premiums on annuities, premiums on which | ||
State
premium taxes are prohibited by federal law, premiums | ||
paid by the State for
health care coverage for Medicaid | ||
eligible insureds as described in Section
5-2 of the Illinois | ||
Public Aid Code, premiums paid for health care services
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included as an element of tuition charges at any university or | ||
college owned
and operated by the State of Illinois, premiums | ||
on group insurance contracts
under the State Employees Group | ||
Insurance Act of 1971, and except premiums for
deferred | ||
compensation plans for employees of the State, units of local
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government, or school districts. The net taxable premium shall | ||
be the gross
taxable premium written reduced only by the | ||
following:
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(a) the amount of premiums returned thereon which shall | ||
be limited to
premiums returned during the same preceding | ||
calendar year and shall not include
the return of cash | ||
surrender values or death benefits on life policies
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including annuities;
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(b) dividends on such direct business that have been | ||
paid in cash, applied
in reduction of premiums or left to | ||
accumulate to the credit of policyholders
or annuitants. In | ||
the case of life insurance, no deduction shall be made for
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the payment of deferred dividends paid in cash to | ||
policyholders on maturing
policies; dividends left to | ||
accumulate to the credit of policyholders or
annuitants | ||
shall be included as gross taxable premium written when | ||
such
dividend
accumulations are applied to purchase | ||
paid-up insurance or to shorten the
endowment or premium | ||
paying period.
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(2) The annual privilege tax payment due from a company | ||
under subsection (4)
of
this Section may be reduced by: (a) the | ||
excess amount, if any, by which the
aggregate income taxes paid | ||
by the company, on a cash basis, for the preceding
calendar | ||
year under Sections 601 and 803 subsections (a) through (d) of | ||
Section 201 of the Illinois
Income Tax Act exceed 1.5% of the | ||
company's net taxable premium written for
that prior calendar | ||
year, as determined under subsection (1) of this Section;
and | ||
(b) the amount of any fire department taxes paid by the company | ||
during the
preceding calendar year under Section 11-10-1 of the | ||
Illinois Municipal Code.
Any deductible amount or offset | ||
allowed under items (a) and (b) of this
subsection for any | ||
calendar year will not be allowed as a deduction or offset
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against the company's privilege tax liability for any other | ||
taxing period or
calendar year.
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(3) If a company survives or was formed by a merger, | ||
consolidation,
reorganization, or reincorporation, the | ||
premiums received and amounts returned
or paid by all companies | ||
party to the merger, consolidation, reorganization,
or | ||
reincorporation shall, for purposes of determining the amount | ||
of the tax
imposed by this Section, be regarded as received, | ||
returned, or paid by the
surviving
or new company.
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(4)(a) All companies subject to the provisions of this | ||
Section shall make an
annual return for the preceding calendar | ||
year on or before March 15 setting
forth such information on | ||
such forms as the Director may reasonably require.
Payments of | ||
quarterly installments of the taxpayer's total estimated tax | ||
for
the current calendar year shall be due on or before April | ||
15, June 15,
September 15, and December 15 of such year, except | ||
that all companies
transacting insurance in this State whose | ||
annual tax for the immediately
preceding calendar year was less | ||
than $5,000 shall make only an annual return.
Failure of a | ||
company to make the annual payment, or to make the quarterly
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payments, if required, of at least 25% of either (i) the total | ||
tax paid during
the
previous calendar year or (ii) 80% of the | ||
actual tax for the current calendar
year shall subject it to | ||
the penalty provisions set forth in Section 412 of
this Code.
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(b) Notwithstanding the foregoing provisions, no annual | ||
return shall be
required or made on March 15, 1998, under this | ||
subsection. For the calendar
year 1998:
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(i) each health maintenance organization shall have no | ||
estimated tax
installments;
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(ii) all companies subject to the tax as of July 1, | ||
1998 as
set forth in subsection (1) shall have estimated | ||
tax installments due on
September
15 and December 15 of | ||
1998 which
installments shall each amount to no less than | ||
one-half of 80% of the actual
tax on its net taxable | ||
premium written during the period July 1, 1998, through
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December 31, 1998; and
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(iii) all other companies shall have estimated tax | ||
installments due on
June
15, September 15, and December 15 | ||
of 1998 which installments shall each
amount to no less | ||
than one-third of 80% of the actual tax on its net taxable
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premium written during the calendar year 1998.
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In the year 1999 and thereafter all companies shall make | ||
annual and
quarterly installments of their estimated tax as | ||
provided by paragraph (a) of
this subsection.
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(5) In addition to the authority specifically granted under | ||
Article XXV of
this Code, the Director shall have such | ||
authority to adopt rules and establish
forms as may be | ||
reasonably necessary
for purposes of determining the | ||
allocation of Illinois corporate income taxes
paid under | ||
subsections (a) through (d) of Section 201 of the Illinois | ||
Income
Tax Act amongst members of a business group that files | ||
an Illinois corporate
income tax return on a unitary basis, for | ||
purposes of regulating the amendment
of tax returns, for | ||
purposes of defining terms, and for purposes of enforcing
the | ||
provisions of
Article XXV of
this Code. The Director shall also | ||
have authority to defer, waive, or abate
the tax
imposed by | ||
this Section if in his opinion the company's solvency and | ||
ability to
meet its insured obligations would be immediately | ||
threatened by payment of the
tax due.
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(6) This Section is subject to the provisions of Section 10 | ||
of the New Markets Development Program Act. | ||
(Source: P.A. 97-813, eff. 7-13-12.)
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(215 ILCS 5/444) (from Ch. 73, par. 1056)
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Sec. 444. Retaliation.
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(1) Whenever the existing or future laws of any other state | ||
or country
shall
require of companies incorporated or organized | ||
under the laws of this State
as a condition precedent to their | ||
doing business in such other state or
country, compliance with | ||
laws, rules, regulations, and prohibitions more
onerous or | ||
burdensome than the rules and regulations imposed by this State
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on foreign or alien companies, or shall require any deposit of | ||
securities
or other obligations in such state or country, for | ||
the protection of
policyholders or otherwise or require of such | ||
companies or agents thereof
or brokers the payment of | ||
penalties, fees, charges, or taxes greater than
the penalties, | ||
fees, charges, or taxes required in the aggregate for like
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purposes by this Code or any other law of this State, of | ||
foreign or alien
companies, agents thereof or brokers, then | ||
such laws, rules, regulations,
and prohibitions of said other | ||
state or country shall apply to companies
incorporated or | ||
organized under the laws of such state or country doing
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business in this State, and all such companies, agents thereof, | ||
or brokers
doing business in this State, shall be required to | ||
make deposits, pay
penalties, fees, charges, and taxes, in | ||
amounts equal to those required in
the aggregate for like | ||
purposes of Illinois companies doing business in
such state or | ||
country, agents thereof or brokers. Whenever any other state
or | ||
country shall refuse to permit any insurance company | ||
incorporated or
organized under the laws of this State to | ||
transact business according to
its usual plan in such other | ||
state or country, the director may, if
satisfied that such | ||
company of this State is solvent, properly managed, and
can | ||
operate legally under the laws of such other state or country,
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forthwith suspend or cancel the license of every insurance | ||
company doing
business in this State which is incorporated or | ||
organized under the laws of
such other state or country to the | ||
extent that it insures in this State
against any of the risks | ||
or hazards which are sought to be insured against
by the | ||
company of this State in such other state or country.
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(2) The provisions of this Section shall not apply to | ||
residual market
or special purpose assessments or guaranty fund | ||
or guaranty association
assessments, both under the laws of | ||
this State and under the laws of any other
state
or country, | ||
and any tax offset or credit for any such assessment shall, for
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purposes of this Section, be treated as a tax paid both under | ||
the laws of this
State and under the laws of any other state or | ||
country.
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(3) The terms "penalties", "fees", "charges", and "taxes" | ||
in subsection
(1) of this
Section
shall include: the penalties, | ||
fees, charges, and taxes collected on a cash basis under State
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law
and
referenced within Article XXV exclusive of any items | ||
referenced by
subsection
(2) of this Section, but including any | ||
tax offset allowed under Section 531.13
of this Code; the | ||
aggregate Illinois corporate income taxes paid imposed under | ||
Sections 601 and 803
subsections (a) through (d) of Section 201 | ||
of the Illinois Income Tax Act during the calendar year for | ||
which the retaliatory tax calculation is being made, less the | ||
recapture of any Illinois corporate income tax cash refunds to | ||
the extent that the amount of tax refunded was reported as part | ||
of the Illinois basis in the calculation of the retaliatory tax | ||
for a prior tax year, provided that such recaptured refund | ||
shall not exceed the amount necessary for equivalence of the | ||
Illinois basis with the state of incorporation basis in such | ||
tax year, and after
any tax offset allowed under Section 531.13 | ||
of this Code;
income or personal property taxes imposed by | ||
other states or countries;
penalties, fees, charges, and taxes | ||
of other states
or countries imposed for purposes like those of | ||
the penalties, fees, charges,
and taxes
specified in Article | ||
XXV of this Code exclusive of any item referenced in
subsection | ||
(2) of this Section; and any penalties, fees, charges, and | ||
taxes
required as
a
franchise, privilege, or licensing tax for
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conducting the business of insurance whether calculated as a | ||
percentage of
income, gross receipts, premium, or otherwise.
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(4) Nothing contained in this Section or Section 409 or | ||
Section 444.1 is
intended to authorize or expand any power of | ||
local governmental units or
municipalities to impose taxes, | ||
fees, or charges.
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(5) This Section is subject to the provisions of Section 10 | ||
of the New Markets Development Program Act. | ||
(Source: P.A. 95-1024, eff. 12-31-08.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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