SB1730 Summary

• Amends Section 412 of the Illinois Insurance Code to establish procedures for insurance premium tax overpayment refunds and creates the Insurance Premium Tax Refund Fund to process cash refunds.

• Requires the Department to issue cash refunds within 120 days of receiving a written refund request and all necessary audit information, unless funds are insufficient, the overpayment is less than $100, or the amount can be offset against future tax liability.

• Establishes penalties for late tax filing ($400 or 10% of tax, whichever is greater, up to $2,000 or 50% of tax due) and unpaid taxes (10% penalty for deficiencies, or 50% penalty if willful, plus 12% annual interest).

• Grants the Department a statutory lien on all real and personal property of companies or persons owing taxes, fees, penalties, or interest, with provisions for jeopardy assessment liens when collection is at risk.

• Specifies that Department liens are subordinate to bona fide purchasers, prior security interests, and general property taxes, and become void after three years unless a notice of lien is filed.