American Fire and Casualty Company, Plaintiff-Respondent v. New Jersey Division of Taxation, Defendant-Appellant…

Summary

The Supreme Court of New Jersey affirmed the Appellate Division, holding that the retaliatory tax must be calculated by preserving the benefit of the premium tax cap, i.e., by applying the statutory New Jersey tax rate of 2.1% against the foreign insurer's home‑state rate and not by reducing the rate through the cap. The Court reasoned that this interpretation harmonizes the retaliatory tax and premium tax cap statutes and furthers both legislative purposes.