Illinois adopts change to 'Retaliatory Tax' law
Multistate tax alert | February 6, 2015
This Tax Alert summarizes the Retaliatory Tax, the decision in 'United States Liability Insurance Company v. Department of Insurance', and the effects of P.A. 98-1169.
Senate Bill 3366
Illinois Governor Bruce Rauner recently signed into law Senate Bill 3366 (Public Act 98-1169, “P.A. 98-1169”).1 The new law, effective January 9, 2015, was adopted in response to the Appellate Court of Illinois’ 2014 decision in United States Liability Insurance Company v. Department of Insurance.2 The case involved a dispute over how insurance companies incorporated or organized outside Illinois (“foreign insurance companies”) but doing business in Illinois should treat their Illinois income tax for purposes of the Illinois “Retaliatory Tax.”
1 P.A. 98-1169; Senate Bill 3366, 99th Gen. Assem.; signed by Governor Rauner on Jan. 9, 2015.
2 United States Liability Insurance Company v. Department of Insurance, 2014 Ill. App. 4th 121125 (May 9, 2014).
Multistate Tax alert archive
The Multistate Tax Alert Archive includes external tax alerts issued by Deloitte Tax LLP's Multistate Tax practice during the last three years. These external alerts highlight selected developments involving state tax legislative, judicial, and administrative matters. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons.