Note from the IMA: The Illinois Manufacturers’ Association opposed SB 3324 and asked Governor Quinn for a veto. The IMA is leading a coalition to repeal this new tax that was passed under false pretense.
McGladrey TAX ALERT | September 16, 2014
On Aug. 15, 2014, Illinois Governor Pat Quinn signed SB 3324, Public Act 98-0978 (the Act), amending the state’s insurance self-procurement tax effective Jan. 1, 2015, to narrow the definition of exempt industrial insureds, effectively expanding the applicability of the tax to many businesses that were previously exempt.
The Illinois insurance self-procurement tax is a 3.5 percent insurance premiums tax imposed on Illinois-based businesses that procure insurance from non-Illinois insurers that are not licensed to do business in the state. Under current law, the state provides a self-procurement tax exemption for industrial insureds.