Bill > SB5949

This bill aims to clarify and consolidate tax exemptions for insurers operating in the state, specifically addressing the business and occupation tax, which is a tax on the gross receipts of most businesses. The legislation intends to correct what it views as an unintended loophole created by a broad interpretation of an existing exemption in RCW 82.04.320, which was originally meant to prevent insurers from paying double taxes. The bill restates this exemption in active voice to ensure it only applies to those who actually pay insurance premium taxes to the state on their gross premiums. It also consolidates this exemption with another existing one from RCW 82.04.322, repealing the latter. Importantly, this change is intended to apply both going forward and retroactively to October 2, 2019, the date the Department of Revenue issued guidance that the bill seeks to reinstate. The bill also clarifies that this change does not affect income received by an insurer for annuities, as these are not considered premiums.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5949&Year=2025&Initiative=false