Macy’s Insurance Unit Income-Tax Exempt, Maryland Court Says (1)

Macy’s Inc. subsidiary Leadville Insurance Co. is exempt from Maryland income tax even on non-insurance related income, a state appeals court ruled.

The unreported opinion issued Monday absolves the insurance company of $23.8 million in taxes, penalties, and interest the Maryland Comptroller of the Treasury assessed against it for the 1996 to 2003 tax years.

Under Maryland law, insurers like Leadville that don’t hold a certificate of authority from the state insurance commissioner must pay a 3% premium receipts tax in lieu of all other state taxes, Judge Michael W. Reed wrote for the Maryland Court of Special ...