215 ILCS 5/409
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article XXV - Fees, Charges And Taxes

 (from Ch. 73, par. 1021)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  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  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  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  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  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  government, or school districts.  The net taxable premium shall be the gross  taxable premium written reduced only by the following:(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 including annuities;(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 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.(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 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  against the company's privilege tax liability for any other taxing period or  calendar year.(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.(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  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.(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:(i) each health maintenance organization shall have     no estimated tax installments;(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 December 31, 1998; and(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 premium written during the calendar year 1998.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.(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.(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; 98-1169, eff. 1-9-15.)