Illinois General Assembly - Full Text of HB3078
Illinois General Assembly

Previous General Assemblies

Full Text of HB3078  100th General Assembly




State of Illinois
2017 and 2018


Introduced , by Rep. Elizabeth Hernandez


New Act
30 ILCS 105/5.878 new

    Creates the Insurance Premium Tax Act. Imposes a tax on each authorized domestic, foreign, or alien insurer engaged in the business of entering into contracts of insurance or annuity in the State in an amount equal to 1.3% of the premiums and fees charged for those insurance policies. Provides that the proceeds from the tax shall be deposited into the Flood Catastrophe Fund and shall be used by the Department of Insurance for the purpose of providing reimbursement to insurers for a portion of their catastrophic losses due to flooding. Amends the State Finance Act to create the Flood Catastrophe Fund. Effective immediately.

LRB100 11010 HLH 21249 b






HB3078LRB100 11010 HLH 21249 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Insurance Premium Tax Act.
6    Section 5. Definitions. As used in this Act:
7    "Department" means the Department of Revenue.
8    "Person" means any natural individual, firm, partnership,
9association, joint stock company, joint adventure, public or
10private corporation, limited liability company, or a receiver,
11executor, trustee, guardian or other representative appointed
12by order of any court.
13    Section 10. Tax imposed.
14    (a) Beginning on July 1, 2015, a tax is imposed upon each
15authorized domestic, foreign, or alien insurer engaged in the
16business of entering into contracts of insurance or annuity in
17this State. The tax shall be imposed at the rate of 1.3% of the
18premiums and fees charged for the following:
19        (1) property or casualty insurance;
20        (2) title insurance;
21        (3) marine or other transportation insurance; and
22        (4) assessments, including membership fees, policy



HB3078- 2 -LRB100 11010 HLH 21249 b

1    fees, and gross deposits received from subscribers to
2    reciprocal or interinsurance agreements.
3    The tax under this Section shall not be imposed on premiums
4and fees charged for workers' compensation policies, accident
5and health insurance policies, or medical malpractice
7    (b) Every person subject to the tax under subsection (a)
8shall apply to the Department (upon a form prescribed and
9furnished by the Department) for a certificate of registration
10under this Act.
11    (c) The Department shall have full power to administer and
12enforce this Act, to collect all taxes and penalties due
13hereunder, to dispose of taxes and penalties so collected in
14the manner hereinafter provided, and to determine all rights to
15credit memoranda, arising on account of the erroneous payment
16of tax or penalty hereunder.
17    (d) The tax imposed under this Act shall be in addition to
18all other occupation, privilege, or insurance taxes imposed by
19the State of Illinois or by any municipal corporation or
20political subdivision thereof. Persons subject to the tax
21imposed by this Act may reimburse themselves for their tax
22liability under this Act by separately stating the amount of
23the tax as an additional charge to consumers.
24    Section 15. Returns. On or before the twentieth day of each
25calendar month, each person who is subject to the tax under



HB3078- 3 -LRB100 11010 HLH 21249 b

1this Act during the preceding calendar month shall file a
2return with the Department, stating:
3        (1) the name of the taxpayer;
4        (2) the address of the taxpayer's principal place of
5    business;
6        (3) the amount of tax due;
7        (4) the signature of the taxpayer; and
8        (5) such other reasonable information as the
9    Department may require.
10    If a taxpayer fails to sign a return within 30 days after
11the proper notice and demand for signature by the Department,
12the return shall be considered valid and any amount shown to be
13due on the return shall be deemed assessed.
14    The taxpayer shall remit the amount of the tax due to the
15Department at the time the taxpayer files his or her return.
16    Section 20. Suspension or revocation of certificates of
17registration. The Department may, after notice and a hearing as
18provided herein, suspend or revoke the certificate of
19registration of any person who violates any of the provisions
20of this Act. Before suspension or revocation of a certificate
21of registration, the Department shall, within 90 days after
22non-compliance and at least 7 days prior to the date of the
23hearing, give the person so accused notice in writing of the
24charge against him or her, and on the date designated shall
25conduct a hearing upon this matter. The lapse of such 90 day



HB3078- 4 -LRB100 11010 HLH 21249 b

1period shall not preclude the Department from conducting
2suspension or revocation proceedings at a later date if
3necessary. Any hearing held under this Section shall be
4conducted by the Director of Revenue or by any officer or
5employee of the Department designated, in writing, by the
6Director of Revenue.
7    Upon the hearing of any such proceeding, the Director of
8Revenue, or any officer or employee of the Department
9designated, in writing, by the Director of Revenue, may
10administer oaths and the Department may procure by its subpoena
11the attendance of witnesses and, by its subpoena duces tecum,
12the production of relevant books and papers. Any circuit court,
13upon application either of the accused or of the Department,
14may, by order duly entered, require the attendance of witnesses
15and the production of relevant books and papers, before the
16Department in any hearing relating to the suspension or
17revocation of certificates of registration. Upon refusal or
18neglect to obey the order of the court, the court may compel
19obedience thereof by proceedings for contempt.
20    Section 25. Review of Department decisions. Any person
21aggrieved by any decision of the Department under this Act may,
22within 20 days after notice of such decision, protest and
23request a hearing, whereupon the Department shall give notice
24to such person of the time and place fixed for such hearing and
25shall hold a hearing in conformity with the provisions of this



HB3078- 5 -LRB100 11010 HLH 21249 b

1Act and then issue its final administrative decision in the
2matter to such person. In the absence of such a protest within
320 days, the Department's decision shall become final without
4any further determination being made or notice given.
5    Section 30. Flood Catastrophe Fund. The proceeds of the tax
6collected under this Act shall be deposited into the Flood
7Catastrophe Fund, a special fund created in the State Treasury.
8Moneys in the Flood Catastrophe Fund shall be used by the
9Department of Insurance for the purpose of providing
10reimbursement to insurers for a portion of their catastrophic
11losses due to flooding.
12    Section 35. Rules. The Department may adopt rules related
13to the enforcement of this Act.
14    Section 800. The State Finance Act is amended by adding
15Section 5.878 as follows:
16    (30 ILCS 105/5.878 new)
17    Sec. 5.878. The Flood Catastrophe Fund.
18    Section 999. Effective date. This Act takes effect upon
19becoming law.