Bill > HB2487

This bill aims to clarify and consolidate tax exemptions for insurers operating in the state, specifically addressing a recent court ruling that created an unintended loophole. The legislation amends existing law (RCW 82.04.320) to explicitly state that the business and occupation tax exemption applies only to gross premiums received by an insurer on which that same insurer has paid insurance premium taxes to the state, as defined by chapters 48.14 or 48.15 RCW. It also extends this exemption to certain insurers exempt from premium taxes and clarifies definitions for "insurance business," "insurer," and "premium." Additionally, the bill repeals a separate exemption related to health maintenance organizations and health care service contractors (RCW 82.04.322). Importantly, the changes are intended to apply both prospectively and retroactively to tax periods beginning on or after October 2, 2019, the date the Department of Revenue issued guidance that the court ruling effectively overturned, ensuring that businesses are treated equally regardless of whether they followed that guidance. The legislation also clarifies that it does not affect final court judgments entered before the effective date of the changes.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2487&Year=2025&Initiative=false