As you may know, the Illinois Supreme Court recently issued a decision holding the Illinois Privilege Tax collected under Section 409 of the Illinois Insurance Code (215 ILCS 5/409) unconstitutional. Per Section 444 of the Illinois Insurance Code (215 ILCS 5/444) all foreign and alien insurers must file and pay Retaliatory taxes without including an Illinois Privilege Tax in the calculation. All other taxes and fees per Article XXV of the Illinois Insurance Code may be used in the Illinois basis.

Any failure to file and pay this Retaliatory tax will result in the imposition of penalties and interest as described in the Illinois Insurance Code.

Sincerely,



John O'Brien
Assistant Deputy Director
Tax & Fiscal Services Section
Department of Insurance
(217) 782-0055