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HB2487 • 2026

Insurer taxes

Concerning taxes imposed on insurers operating within the state.

Budget Education Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Representative Macri
Last action
2026-04-01
Official status
C 263 L 26
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Insurer taxes

Insurer taxes

What This Bill Does

  • Insurer taxes

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

2487 AMH MACR H3790.2

2393 • Macri

ADOPTED AS AMENDED

Plain English: 2487 AMH MACR H3790.2 HB 2487 - H AMD 2393 By Representative Macri ADOPTED AS AMENDED 03/06/2026 Strike everything after the enacting clause and insert the 1 following: 2 "NEW SECTION.

  • 2487 AMH MACR H3790.2 HB 2487 - H AMD 2393 By Representative Macri ADOPTED AS AMENDED 03/06/2026 Strike everything after the enacting clause and insert the 1 following: 2 "NEW SECTION.
  • Sec.
  • 1.
  • (1) The legislature finds that unintended 3 tax loopholes adversely impact the state budget and reduce amounts 4 available to fund schools and other essential services.5 (2) The legislature further finds that in 1935 the legislature 6 enacted as RCW 82.04.320 a business and occupation tax exemption that 7 applied to "any person in respect to insurance business upon which a 8 tax based on gross premiums is paid to the state." The Washington 9 supreme court, in Armstrong v.
2487 AMH DUFA BUR 352

2403 • Dufault

SCOPED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH DUFA BUR 352 1 - Official Print By Representative Dufault EFFECT: Adds a new section to the bill providing legislative privilege does not apply to internal deliberations concerning this act.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH DUFA BUR 352 1 - Official Print By Representative Dufault EFFECT: Adds a new section to the bill providing legislative privilege does not apply to internal deliberations concerning this act.
  • 2487 AMH DUFA BUR 352 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2403 SCOPED 03/06/2026 On page 8, after line 10 of the striking amendment, insert the following: "NEW SECTION Sec.
  • 9.
  • Legislative privilege does not apply to internal deliberations concerning this act.
2487 AMH ABEL BUR 348

2463 • Abell

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH ABEL BUR 348 1 - Official Print By Representative Abell EFFECT: Adds an exemption to the business and occupation (B&O) tax for affiliates of insurers that are entitled to the insurance premium exemption to the B&O tax, but only if an insurer in the holding company system pays premium tax and offers Medicaid coverage to Washington residents.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH ABEL BUR 348 1 - Official Print By Representative Abell EFFECT: Adds an exemption to the business and occupation (B&O) tax for affiliates of insurers that are entitled to the insurance premium exemption to the B&O tax, but only if an insurer in the holding company system pays premium tax and offers Medicaid coverage to Washington residents.
  • 2487 AMH ABEL BUR 348 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2463 WITHDRAWN 03/06/2026 On page 3, after line 16 of the striking amendment, insert the following: "(4) This chapter does not apply to affiliates of an insurer entitled to an exemption under this section if an insurer in the holding company system, as defined in RCW 48.31B.005, pays premium taxes pursuant to RCW 48.14.020 or RCW 48.14.0201 and offers Medicaid coverage to Washington residents." Renumber the remaining subsections consecutively and correct any internal references accordingly.
  • END
2487 AMH ABEL BUR 347

2464 • Abell

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH ABEL BUR 347 1 - Official Print By Representative Abell EFFECT: Authorizes insurers and taxpayers subject to the business & occupation tax to file a consolidated tax return.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH ABEL BUR 347 1 - Official Print By Representative Abell EFFECT: Authorizes insurers and taxpayers subject to the business & occupation tax to file a consolidated tax return.
  • 2487 AMH ABEL BUR 347 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2464 WITHDRAWN 03/06/2026 On page 8, after line 10 of the striking amendment, insert the following: "NEW SECTION Sec.
  • 9.
  • A new section is added to chapter 82.04 RCW to read as follows: Insurers and taxpayers subject to chapter 82.04 RCW may file a consolidated tax return." --- END
2487 AMH COUT HARA 443

2465 • Couture

NOT ADOPTED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH COUT HARA 443 1 - Official Print By Representative Couture EFFECT: Removes the intent language.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH COUT HARA 443 1 - Official Print By Representative Couture EFFECT: Removes the intent language.
  • Removes the retroactive application of the change to the insurance premium B&O exemption.
  • 2487 AMH COUT HARA 443 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2465 NOT ADOPTED 03/06/2026 On page 1, beginning on line 3 of the striking amendment, strike all of section 1 Renumber the remaining sections consecutively and correct any internal references accordingly.
  • On page 8, beginning on line 4 of the striking amendment, strike all of section 6 Renumber the remaining sections consecutively and correct any internal references accordingly.
2487 AMH MARS HARA 444

2466 • Marshall

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH MARS HARA 444 1 - Official Print By Representative Marshall EFFECT: Removes the intent language.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH MARS HARA 444 1 - Official Print By Representative Marshall EFFECT: Removes the intent language.
  • Removes the section that allows for a newly designed temporary waiver of penalties and interest.
  • Removes the retroactive application of the change to the insurance premium B&O exemption.
  • 2487 AMH MARS HARA 444 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2466 WITHDRAWN 03/06/2026 On page 1, beginning on line 3 of the striking amendment, strike all of section 1 Renumber the remaining sections consecutively and correct any internal references accordingly.
2487 AMH ORCU H3796.1

2471 • Orcutt

NOT ADOPTED

Plain English: 2487 AMH ORCU H3796.1 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2471 By Representative Orcutt NOT ADOPTED 03/06/2026 Beginning on page 1, line 3, strike all material through page 8, 1 line 10 and insert the following: 2 "Sec.

  • 2487 AMH ORCU H3796.1 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2471 By Representative Orcutt NOT ADOPTED 03/06/2026 Beginning on page 1, line 3, strike all material through page 8, 1 line 10 and insert the following: 2 "Sec.
  • 1.
  • RCW 82.04.320 and 2021 c 281 s 10 are each amended to 3 read as follows: 4 (1) ((Except as otherwise provided in this section, this chapter 5 does not apply to any person in respect to insurance business upon 6 which a tax based on gross premiums is paid to the state.7 (2) The provisions of this section do not exempt any person 8 engaging in the business of representing any insurance company, 9 whether as general or local agent, or acting as broker for such 10 companies.11 (3) The provisions of this section do not exempt any bonding 12 company from tax with respect to gross income derived from the 13 completion of any contract as to which it is a surety, or as to any 14 liability as successor to the liability of the defaulting contractor.15 (4))) This chapter does not apply to insurance business conducted 16 by an insurer.17 (2) The exemption in subsection (1) of this section also applies 18 to gross premiums received by an insurer that is exempt from premium 19 taxes under RCW 48.14.0201(6).20 (3) The exemption in subsection (1) of this section also applies 21 to consideration received by an insurer for the granting of an 22 annuity.23 (4) For purposes of this section, for periods preceding May 12, 24 2021, eligible captive insurers as defined in RCW 48.201.020 are 25 deemed, in respect to their insurance business, to have paid a tax 26 under RCW 48.14.020 or 48.201.040 on ((gross)) their receipt of 27 premiums ((to the state)).
  • 28 (5) Eligible captive insurers affiliated with a public 29 institution of higher education that are exempt from paying a premium 30 tax under RCW 48.201.040 are exempt from the tax imposed by this 31 Code Rev/CL:akl 1 H-3796.1/26 chapter in respect to their insurance business.
2487 AMH JACO KRNG 167

2513 • Jacobsen

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH JACO KRNG 167 1 - Official Print By Representative Jacobsen EFFECT: Exempts, from business and occupation tax, insurer holding company systems that contribute at least one million dollars between calendar years 2021 and 2025 to charitable organizations to improve access to, and the quality of, health care in Washington state.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH JACO KRNG 167 1 - Official Print By Representative Jacobsen EFFECT: Exempts, from business and occupation tax, insurer holding company systems that contribute at least one million dollars between calendar years 2021 and 2025 to charitable organizations to improve access to, and the quality of, health care in Washington state.
  • 2487 AMH JACO KRNG 167 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2513 WITHDRAWN 03/06/2026 On page 8, after line 3 of the striking amendment, insert the following: "NEW SECTION.
  • Sec.
  • 6.
2487 AMH JACO KRNG 169

2514 • Jacobsen

NOT ADOPTED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH JACO KRNG 169 1 - Official Print By Representative Jacobsen EFFECT: Exempts any entity within an insurer holding company system from business and occupation tax if the insurer pays insurance premiums tax.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH JACO KRNG 169 1 - Official Print By Representative Jacobsen EFFECT: Exempts any entity within an insurer holding company system from business and occupation tax if the insurer pays insurance premiums tax.
  • 2487 AMH JACO KRNG 169 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2514 NOT ADOPTED 03/06/2026 On page 8, after line 3 of the striking amendment, insert the following: "NEW SECTION.
  • Sec.
  • 6.
2487 AMH JACO HARA 446

2515 • Jacobsen

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH JACO HARA 446 1 - Official Print By Representative Jacobsen EFFECT: Exempts affiliates of an insurer from B&O taxes if the insurer pays premium taxes and offers Medicaid coverage and a health benefit plan.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH JACO HARA 446 1 - Official Print By Representative Jacobsen EFFECT: Exempts affiliates of an insurer from B&O taxes if the insurer pays premium taxes and offers Medicaid coverage and a health benefit plan.
  • 2487 AMH JACO HARA 446 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2515 WITHDRAWN 03/06/2026 On page 8, after line 10 of the striking amendment, add the following: "NEW SECTION.
  • Sec.
  • 9.
2487 AMH JACO KRNG 166

2516 • Jacobsen

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH JACO KRNG 166 1 - Official Print By Representative Jacobsen EFFECT: Exempts any services offered by an insurer or an affiliate of an insurer that pays premium taxes in Washington from sales tax.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH JACO KRNG 166 1 - Official Print By Representative Jacobsen EFFECT: Exempts any services offered by an insurer or an affiliate of an insurer that pays premium taxes in Washington from sales tax.
  • 2487 AMH JACO KRNG 166 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2516 WITHDRAWN 03/06/2026 On page 8, after line 3 of the striking amendment, insert the following: "NEW SECTION.
  • Sec.
  • 6.
2487 AMH LOW HARA 445

2517 • Low

NOT ADOPTED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH LOW HARA 445 1 - Official Print By Representative Low EFFECT: Exempts affiliates of an insurer from B&O taxes if the insurer pays premium taxes and offers a health benefit plan.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH LOW HARA 445 1 - Official Print By Representative Low EFFECT: Exempts affiliates of an insurer from B&O taxes if the insurer pays premium taxes and offers a health benefit plan.
  • 2487 AMH LOW HARA 445 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2517 NOT ADOPTED 03/06/2026 On page 8, after line 10 of the striking amendment, add the following: "NEW SECTION.
  • Sec.
  • 9.
2487 AMH PENN TAYT 561

2518 • Penner

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH PENN TAYT 561 1 - Official Print By Representative Penner 2487 AMH PENN TAYT 561 HB 2487 - H AMD TO H AMD(H-3790.2/26) 2518 WITHDRAWN 03/06/2026 On page 1, beginning on line 3 of the striking amendment, strike all of section 1 and insert the following: "NEW SECTION.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH PENN TAYT 561 1 - Official Print By Representative Penner 2487 AMH PENN TAYT 561 HB 2487 - H AMD TO H AMD(H-3790.2/26) 2518 WITHDRAWN 03/06/2026 On page 1, beginning on line 3 of the striking amendment, strike all of section 1 and insert the following: "NEW SECTION.
  • Sec.
  • 1.
  • (1) The legislature finds that in 1935 the legislature enacted as RCW 82.04.320 a business and occupation tax exemption that applied to "any person in respect to insurance business upon which a tax based on gross premiums is paid to the state." (2) In 2024, in Envolve Pharmacy Solutions, Inc.
2487 AMH PENN TAYT 558

2519 • Penner

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH PENN TAYT 558 1 - Official Print By Representative Penner 2487 AMH PENN TAYT 558 HB 2487 - H AMD TO H AMD(H-3790.2/26) 2519 WITHDRAWN 03/06/2026 On page 3, line 12 of the striking amendment, after "(2)" insert "This chapter also does not apply to amounts received by an affiliate, from an insurer that pays premium taxes pursuant to RCW 48.14.020 or 48.14.0201, in respect to insurance business activities regulated under Title 48.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH PENN TAYT 558 1 - Official Print By Representative Penner 2487 AMH PENN TAYT 558 HB 2487 - H AMD TO H AMD(H-3790.2/26) 2519 WITHDRAWN 03/06/2026 On page 3, line 12 of the striking amendment, after "(2)" insert "This chapter also does not apply to amounts received by an affiliate, from an insurer that pays premium taxes pursuant to RCW 48.14.020 or 48.14.0201, in respect to insurance business activities regulated under Title 48.
  • (3)" Renumber the remaining subsections consecutively and correct any internal references accordingly.
  • On page 3, line 32 of the striking amendment, after "(a)" insert ""Affiliate" means a person that directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with another person.
  • (b)" Renumber the remaining subsections consecutively and correct any internal references accordingly.
2487 AMH CORR REIN 495

2520 • Corry

NOT ADOPTED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH CORR REIN 495 1 - Official Print By Representative Corry EFFECT: Applies the exemption to an insurance holding company system for purposes of insurance business regulated under Title 48.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH CORR REIN 495 1 - Official Print By Representative Corry EFFECT: Applies the exemption to an insurance holding company system for purposes of insurance business regulated under Title 48.
  • 2487 AMH CORR REIN 495 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2520 NOT ADOPTED 03/06/2026 On page 3, line 12 of the striking amendment, after "(2)" insert "This chapter does not apply to amounts received by any member of an insurance holding company system as defined in RCW 48.31B.005 from an insurer or taxpayer in respect to insurance business that is conducted on behalf of an insurer or taxpayer which is subject to a tax by the state based on gross premiums of the insurer.
  • (3)" Renumber the remaining subsections consecutively and correct any internal references accordingly.
  • On page 3, line 32 of the striking amendment, after "activities" strike all material through "RCW 48.01.050" on line 35 and insert "regulated under Title 48 RCW.
2487 AMH ABEL KRNG 170

2521 • Abell

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH ABEL KRNG 170 1 - Official Print By Representative Abell EFFECT: Modifies the insurance premium tax exemption to the business and occupation tax by adding health care services included within the definition of practice of dentistry to the exemption.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH ABEL KRNG 170 1 - Official Print By Representative Abell EFFECT: Modifies the insurance premium tax exemption to the business and occupation tax by adding health care services included within the definition of practice of dentistry to the exemption.
  • 2487 AMH ABEL KRNG 170 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2521 WITHDRAWN 03/06/2026 On page 3, beginning on line 15 of the striking amendment, after "(3)" strike all material through "(4)" on line 17 and insert "This chapter does not apply to amounts for health care services included within the definition of practice of dentistry under RCW 18.32.020 offered by an insurer.
  • (4) This chapter does not apply to consideration received by an insurer for annuities regulated under chapters 48.23 and 48.24 RCW.
  • (5)" Reletter the remaining subsections consecutively and correct any internal references accordingly.
2487 AMH WATE BUR 356

2522 • Waters

NOT ADOPTED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH WATE BUR 356 1 - Official Print By Representative Waters EFFECT: Requires the Department of Revenue to provide the Legislature with an annual report stating the value of all business and occupation taxes collected by the Department in the prior fiscal year from all insurers and their affiliates.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH WATE BUR 356 1 - Official Print By Representative Waters EFFECT: Requires the Department of Revenue to provide the Legislature with an annual report stating the value of all business and occupation taxes collected by the Department in the prior fiscal year from all insurers and their affiliates.
  • Defines the term affiliate, as provided in the Insurer Holding Company Act, as an affiliate of, or person affiliated with, a specific person, and includes a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.
  • 2487 AMH WATE BUR 356 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2522 NOT ADOPTED 03/06/2026 On page 3, after line 30 of the striking amendment, insert the following: "(7) The department must submit a written report to the legislature no later than January 1 of each year that states the value of all business and occupation taxes collected by the department in the previous fiscal year from all insurers and affiliates of insurers." Renumber the remaining subsections consecutively and correct any internal references accordingly.
  • On page 3, after line 31 of the striking amendment, insert the following: "(a) "Affiliate" has the same meaning as in RCW 48.31B.005." Renumber the remaining subsections consecutively and correct any internal references accordingly.
2487 AMH LOW TAYT 559

2523 • Low

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH LOW TAYT 559 1 - Official Print By Representative Low EFFECT: Provides a business and occupation tax credit for an affiliate of an insurer for premium taxes paid by an insurer that is within the same holding company.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH LOW TAYT 559 1 - Official Print By Representative Low EFFECT: Provides a business and occupation tax credit for an affiliate of an insurer for premium taxes paid by an insurer that is within the same holding company.
  • 2487 AMH LOW TAYT 559 HB 2487 - H AMD TO H AMD(H-3790.2/26) 2523 WITHDRAWN 03/06/2026 On page 4, after line 3 of the striking amendment, insert the following: "NEW SECTION.
  • Sec.
  • 4.
2487 AMH BURN BUR 353

2524 • Burnett

NOT ADOPTED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH BURN BUR 353 1 - Official Print By Representative Burnett EFFECT: Modifies the definition of "select advanced computing business" by limiting it to persons primarily engaged in advanced computing who are members of an affiliated group with global gross revenue greater than 25 billion dollars during the prior year.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH BURN BUR 353 1 - Official Print By Representative Burnett EFFECT: Modifies the definition of "select advanced computing business" by limiting it to persons primarily engaged in advanced computing who are members of an affiliated group with global gross revenue greater than 25 billion dollars during the prior year.
  • Provides a person or an affiliated group is "primarily engaged" if more than 50 percent of its gross income in the prior year was received from engaging in the specified activity.
  • 2487 AMH BURN BUR 353 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2524 NOT ADOPTED 03/06/2026 On page 6, line 26 of the striking amendment, after "(vi)" strike all material through "year" on line 30 and insert ""Select advanced computing business" means a person who is primarily engaged in advanced computing and is a member of an affiliated group with ((at least one member of the affiliated group engaging in the business of advanced computing, and the affiliated group has)) worldwide gross revenue of more than $25,000,000,000 during the immediately preceding calendar year" On page 7, beginning on line 3 of the striking amendment, after "(1)(f)(vi)," strike all material through "business" on line 4 and insert "(("primarily" is determined based on gross income of the business)) a person or an affiliated group shall be considered "primarily engaged" if more than 50 percent of its gross income in the prior calendar year is received from engaging in the specified activity" --- END
2487 AMH ABEL BUR 350

2525 • Abell

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH ABEL BUR 350 1 - Official Print By Representative Abell EFFECT: Creates an exemption from the advanced computing business surcharge for members of insurer holding company systems.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH ABEL BUR 350 1 - Official Print By Representative Abell EFFECT: Creates an exemption from the advanced computing business surcharge for members of insurer holding company systems.
  • 2487 AMH ABEL BUR 350 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2525 WITHDRAWN 03/06/2026 On page 7, line 19 of the striking amendment, after “(iv)” insert “A member of an insurer holding company system as defined in RCW 48.31B.005; or (v)” --- END
2487 AMH ABEL TAYT 557

2526 • Abell

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH ABEL TAYT 557 1 - Official Print By Representative Abell EFFECT: Requires the Department of Revenue to consult taxpayers and insurers to improve efficiency in filing taxes.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH ABEL TAYT 557 1 - Official Print By Representative Abell EFFECT: Requires the Department of Revenue to consult taxpayers and insurers to improve efficiency in filing taxes.
  • 2487 AMH ABEL TAYT 557 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2526 WITHDRAWN 03/06/2026 On page 8, after line 3, insert the following: "NEW SECTION.
  • Sec.
  • 6.
2487 AMH LOW KRNG 171

2527 • Low

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH LOW KRNG 171 1 - Official Print By Representative Low 2487 AMH LOW KRNG 171 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2527 WITHDRAWN 03/06/2026 On page 8, after line 3 of the striking amendment, insert the following: "Sec.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH LOW KRNG 171 1 - Official Print By Representative Low 2487 AMH LOW KRNG 171 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2527 WITHDRAWN 03/06/2026 On page 8, after line 3 of the striking amendment, insert the following: "Sec.
  • 6.
  • RCW 82.04.288 and 2025 c 420 s 201 are each amended to read as follows: (1) Beginning January 1, 2026, in addition to all other taxes imposed under this chapter, persons must pay a surcharge on Washington taxable income over $250,000,000 in a calendar year.
  • (2) The rate of the tax is 0.5 percent of the amount of Washington taxable income over $250,000,000.
2487 AMH PENN BUR 351

2528 • Penner

NOT ADOPTED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH PENN BUR 351 1 - Official Print By Representative Penner EFFECT: Requires the Department of Revenue to submit certain changes to tax guidance to the legislature for review at least 12 months before the proposed change takes effect.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH PENN BUR 351 1 - Official Print By Representative Penner EFFECT: Requires the Department of Revenue to submit certain changes to tax guidance to the legislature for review at least 12 months before the proposed change takes effect.
  • 2487 AMH PENN BUR 351 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2528 NOT ADOPTED 03/06/2026 On page 8, after line 10 of the striking amendment, insert the following: "NEW SECTION Sec.
  • 9.
  • A new section is added to chapter 82.01 RCW to read as follows: Prior to modifying or withdrawing any tax guidance that has been in effect for 10 or more years, and which would change a department policy regarding a tax law or interpretation of any tax law, the department must submit notice of its proposal to the legislature at least 12 months in advance of the proposed change taking effect." --- END
2487 AMH BURN HARA 447

2529 • Burnett

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH BURN HARA 447 1 - Official Print By Representative Burnett EFFECT: Exempts members of an insurance holding company system from the B&O surcharge on taxable income over $250 million and the advanced computing surcharge.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH BURN HARA 447 1 - Official Print By Representative Burnett EFFECT: Exempts members of an insurance holding company system from the B&O surcharge on taxable income over $250 million and the advanced computing surcharge.
  • 2487 AMH BURN HARA 447 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2529 WITHDRAWN 03/06/2026 On page 8, after line 10 of the striking amendment, insert the following: "NEW SECTION.
  • Sec.
  • 9.
2487 AMH WALJ TAYT 560

2530 • Walsh

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH WALJ TAYT 560 1 - Official Print By Representative Walsh EFFECT: Removes the intent section.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH WALJ TAYT 560 1 - Official Print By Representative Walsh EFFECT: Removes the intent section.
  • 2487 AMH WALJ TAYT 560 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2530 WITHDRAWN 03/06/2026 On page 1, beginning on line 3 of the striking amendment, strike all of section 1 Renumber the remaining sections consecutively and correct any internal references accordingly.
  • END
2487 AMH COUT REIN 496

2531 • Couture

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH COUT REIN 496 1 - Official Print By Representative Couture EFFECT: Removes the requirement that the Department of Revenue work with the Office of the Insurance Commissioner to adopt rules and issue tax guidance.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH COUT REIN 496 1 - Official Print By Representative Couture EFFECT: Removes the requirement that the Department of Revenue work with the Office of the Insurance Commissioner to adopt rules and issue tax guidance.
  • 2487 AMH COUT REIN 496 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2531 WITHDRAWN 03/06/2026 On page 3, beginning on line 27 of the striking amendment, strike all of subsection (6) Renumber the remaining subsections consecutively and correct any internal references accordingly.
  • END
2487 AMH CORR H3803.1

2532 • Corry

NOT ADOPTED

Plain English: 2487 AMH CORR H3803.1 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2532 By Representative Corry NOT ADOPTED 03/06/2026 Beginning on page 1, line 3, strike all material through "act." 1 on page 8, line 10 and insert the following: 2 "NEW SECTION.

  • 2487 AMH CORR H3803.1 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2532 By Representative Corry NOT ADOPTED 03/06/2026 Beginning on page 1, line 3, strike all material through "act." 1 on page 8, line 10 and insert the following: 2 "NEW SECTION.
  • Sec.
  • 1.
  • (1) The legislature finds that in 1935 3 the legislature enacted as RCW 82.04.320 a business and occupation 4 tax exemption that applied to "any person in respect to insurance 5 business upon which a tax based on gross premiums is paid to the 6 state."7 (2) In 2024, in Envolve Pharmacy Solutions, Inc.
2487 AMH MARS BUR 349

2533 • Marshall

NOT ADOPTED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH MARS BUR 349 1 - Official Print By Representative Marshall EFFECT: Strikes the underlying amendment's content, replaces it with legislative findings regarding the Envolve Pharmacy Solutions decision, and directs the Department of Revenue (DOR) to issue refunds to insurers of any business and occupation tax payments made in reliance on DOR's interim guidance.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH MARS BUR 349 1 - Official Print By Representative Marshall EFFECT: Strikes the underlying amendment's content, replaces it with legislative findings regarding the Envolve Pharmacy Solutions decision, and directs the Department of Revenue (DOR) to issue refunds to insurers of any business and occupation tax payments made in reliance on DOR's interim guidance.
  • 2487 AMH MARS BUR 349 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2533 NOT ADOPTED 03/06/2026 Strike everything after the enacting clause and insert the following: "NEW SECTION.
  • Sec.
  • 1.
2487 AMH CORR BUR 359

2535 • Corry

WITHDRAWN

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH CORR BUR 359 1 - Official Print By Representative Corry EFFECT: Modifies an exemption from the workforce education investment surcharge by (1) removing the exemption for qualifying insurers required to report and pay insurance premium taxes and persons exempt from premium taxes, and replacing it with an exemption for any member of an insurance holding company system; and (2) making the exemption retroactive to January 1, 2020, instead of 2022.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2487 AMH CORR BUR 359 1 - Official Print By Representative Corry EFFECT: Modifies an exemption from the workforce education investment surcharge by (1) removing the exemption for qualifying insurers required to report and pay insurance premium taxes and persons exempt from premium taxes, and replacing it with an exemption for any member of an insurance holding company system; and (2) making the exemption retroactive to January 1, 2020, instead of 2022.
  • 2487 AMH CORR BUR 359 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2535 WITHDRAWN 03/06/2026 On page 7, beginning on line 15 of the striking amendment, after "organization;" strike all material through "period" on line 20 and insert "or (iii) Any member of an insurance holding company system as defined in RCW 48.31B.005" On page 8, line 7 of the striking amendment, after "January 1," strike "2022" and insert "2020" --- END
2487 AMH MACR H3814.1

2536 • Macri

ADOPTED

Plain English: 2487 AMH MACR H3814.1 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2536 By Representative Macri ADOPTED 03/06/2026 On page 3, line 17, after " (4)" insert " This chapter does not 1 apply to gross premiums received by an assigned risk plan established 2 by an act of the legislature, either directly or indirectly, where 3 premium taxes were paid by a servicing carrier for such assigned risk 4 plan.5 (5)" 6 Renumber the remaining subsections consecutively and correct any 7 internal references accordingly.

  • 2487 AMH MACR H3814.1 HB 2487 - H AMD TO H AMD (H-3790.2/26) 2536 By Representative Macri ADOPTED 03/06/2026 On page 3, line 17, after " (4)" insert " This chapter does not 1 apply to gross premiums received by an assigned risk plan established 2 by an act of the legislature, either directly or indirectly, where 3 premium taxes were paid by a servicing carrier for such assigned risk 4 plan.5 (5)" 6 Renumber the remaining subsections consecutively and correct any 7 internal references accordingly.
  • 8 On page 3, line 35, after " 48.01.050" insert " and also includes 9 health maintenance organizations regulated under chapter 48.46 RCW 10 and health care service contractors regulated under chapter 48.44 11 RCW" 12 On page 4, line 8, after "RCW" insert ", and allow any person who 13 owes delinquent taxes due under this chapter to enter into a three-14 year repayment schedule for taxes owed," 15 On page 4, line 9, after "The" strike "penalties and interest" 16 and insert "taxes owed, and any penalties and interest,"17 On page 4, line 14, after "The" strike "penalties and interest" 18 and insert "taxes owed, and any penalties and interest,"19 On page 4, line 18, after "waiver" insert ", and repayment 20 schedule," 21 On page 4, line 20, after "waiver" insert ", and repayment 22 schedule," 23 On page 4, beginning on line 23, after "payment" strike all 24 material through "invoice" on line 24 and insert "in accordance with 25 the repayment schedule" 26 Code Rev/CL:jlb 1 H-3814.1/26 On page 4, line 30, after "waiver" insert ", and repayment 1 schedule," 2 On page 5, line 17, after "annually" insert " , unless 50 percent 3 or more of the worldwide gross revenue of all members of an 4 affiliated group is from the payment of insurance premiums during the 5 immediately preceding calendar year, in which case the combined 6 surcharge imposed under this subsection (1) paid by all members of an 7 affiliated group may be no more than $25,000,000 annually"8 On page 6, line 25, after "otherwise;" strike "and" and insert 9 "((and))" 10 On page 6, line 26, after " (vi)" insert " "Premium" has the same 11 meaning as in RCW 48.18.170; and12 (vii)" 13 Correct any internal references accordingly.
  • 14 On page 7, line 16, after " 48.01.050," insert " or any health 15 maintenance organization regulated under chapter 48.46 RCW or health 16 care service contractor regulated under chapter 48.44 RCW,"17 EFFECT: (1) Adds a new business and occupation (B&O) tax exemption for gross premiums received by an assigned risk plan established by an act of the legislature, either directly or indirectly, where premium taxes were paid by a servicing carrier for such assigned risk plan.
  • (2) Modifies the definition of "insurer" for the purpose of the insurance premium exemption from the B&O tax, such that it also covers qualifying health maintenance organizations and health care service contractors.

Bill History

  1. 2026-04-01 House

    Effective date 6/11/2026.

Official Summary Text

Insurer taxes

Current Bill Text

Read the full stored bill text
AN ACT Relating to taxes imposed on insurers operating within the 1
state; amending RCW 82.04.320; creating new sections; and repealing 2
RCW 82.04.322. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. (1) The legislature finds that unintended 5
tax loopholes adversely impact the state budget and reduce amounts 6
available to fund schools and other essential services.7
(2) The legislature further finds that in 1935 the legislature 8
enacted as RCW 82.04.320 a business and occupation tax exemption that 9
applied to "any person in respect to insurance business upon which a 10
tax based on gross premiums is paid to the state." The Washington 11
supreme court, in Armstrong v. State , 61 Wn.2d 116 (1962), 12
unanimously held that the purpose of the exemption was to prevent 13
insurance businesses from paying two state taxes on the same income, 14
not to create a means for noninsurers to avoid paying any state tax.15
(3) In 2024, in Envolve Pharmacy Solutions, Inc. v. Department of 16
Revenue, 4 Wn.3d 142 (2024), a majority of the Washington supreme 17
court broadly construed the exemption to permit pharmacy benefit 18
managers, and likely other businesses that do not earn premium income 19
and do not pay a premium tax, to avoid paying business and occupation 20
tax on amounts they receive from insurance businesses that do pay 21
Z-0588.1
HOUSE BILL 2487
State of Washington 69th Legislature 2026 Regular Session
By Representative Macri; by request of Department of Revenue
Read first time 01/14/26. Referred to Committee on Finance.
p. 1 HB 2487
premium tax, contrary to the purpose of the exemption as construed in 1
Armstrong. The court relied in large part on the legislature's use of 2
passive voice, rather than active voice, when it enacted the 3
exemption in 1935. If left unchecked, the decision in Envolve 4
Pharmacy Solutions, Inc. would create a large and unintended drain on 5
the state's budget. 6
(4) Therefore, the legislature finds that it is necessary to 7
restore parity between the language used in RCW 82.04.320 and the 8
intended purpose of that business and occupation tax exemption by 9
restating the exemption in active voice. To streamline the 10
administration of the tax as applied to insurers, the legislature 11
intends to consolidate the similar tax exemptions in RCW 82.04.320 12
and 82.04.322 into a single exemption. 13
(5) The legislature further finds that on October 2, 2019, the 14
department of revenue issued public guidance in the form of an 15
interim guidance statement that explained, in part, that a person 16
claiming the exemptions in RCW 82.04.320 must show proof that it paid 17
premium tax to the state with respect to the gross income it claims 18
as exempt from business and occupation tax. The supreme court's 19
decision in Envolve Pharmacy Solutions, Inc . forced the department to 20
rescind that guidance. 21
(6) The legislature intends for this act to apply both 22
prospectively and retroactively to tax periods beginning on or after 23
October 2, 2019, the date that the department of revenue issued the 24
interim guidance statement. By applying the act retroactively to 25
October 2, 2019, the legislature intends to treat businesses that did 26
not follow the department's guidance equally to those businesses that 27
followed the guidance. The legislature intends that enforcement 28
actions by the department of revenue against persons governed by the 29
exemption under RCW 82.04.322 before the effective date of this 30
section remain valid. 31
Sec. 2. RCW 82.04.320 and 2021 c 281 s 10 are each amended to 32
read as follows: 33
(1) ((Except as otherwise provided in this section, this chapter 34
does not apply to any person in respect to insurance business upon 35
which a tax based on gross premiums is paid to the state.36
(2) The provisions of this section do not exempt any person 37
engaging in the business of representing any insurance company, 38
p. 2 HB 2487
whether as general or local agent, or acting as broker for such 1
companies. 2
(3) The provisions of this section do not exempt any bonding 3
company from tax with respect to gross income derived from the 4
completion of any contract as to which it is a surety, or as to any 5
liability as successor to the liability of the defaulting contractor.6
(4))) This chapter does not apply to gross premiums received by 7
an insurer upon which the same insurer paid insurance premium taxes 8
to the state pursuant to chapter 48.14 or 48.15 RCW.9
(2) The exemption in subsection (1) of this section also applies 10
to gross premiums received by an insurer that is exempt from premium 11
taxes under RCW 48.14.0201(6).12
(3) For purposes of this section, for periods preceding May 12, 13
2021, eligible captive insurers as defined in RCW 48.201.020 are 14
deemed, in respect to their insurance business, to have paid a tax 15
under RCW 48.14.020 or 48.201.040 on ((gross)) their receipt of 16
premiums ((to the state)). 17
(((5))) (4) Eligible captive insurers affiliated with a public 18
institution of higher education that are exempt from paying a premium 19
tax under RCW 48.201.040 are exempt from the tax imposed by this 20
chapter in respect to their insurance business. For purposes of this 21
subsection (((5))) (4), the definitions in RCW 48.201.020 apply.22
(5) For the purposes of this section:23
(a) "Insurance business" means activity performed by an insurer 24
as defined in RCW 48.01.050 upon which it earns or receives premiums.25
(b) "Insurer" means a person that lawfully transacts insurance 26
business in this state, including an insurance broker who pays 27
premium taxes pursuant to chapter 48.14 or 48.15 RCW on behalf of 28
insurance businesses.29
(c) "Premium" has the same meaning as in RCW 48.18.170.30
NEW SECTION. Sec. 3. RCW 82.04.322 (Exemptions— Health 31
maintenance organization, health care service contractor, certified 32
health plan) and 1993 c 492 s 303 are each repealed.33
NEW SECTION. Sec. 4. Section 2 of this act applies both 34
prospectively and retroactively to October 2, 2019.35
NEW SECTION. Sec. 5. This act does not affect any final 36
judgment, no longer subject to appeal, entered by a court of 37
p. 3 HB 2487
competent jurisdiction before the effective date of section 2 of this 1
act. 2
--- END ---
p. 4 HB 2487