Bell Federal Savings & Loan Ass'n v. Wagner

This case comes to us on cross-motions for summary judgment. The sole issue presented is whether interest paid by the Federal Home Loan Bank of Chicago (FHLB) to its depositors on daily investment deposit accounts is exempt from state taxation. The circuit court determined that interest on such accounts is not exempt. We affirm.

Plaintiff, Bell Federal Savings and Loan Association (Bell), brought an action to recover money paid under protest to the Illinois Department of Revenue (the Department). Bell earns interest on a deposit account with the FHLB, known as a daily investment deposit…