This bill amends RCW 82.04.320 to clarify the business and occupation tax exemption for insurers, addressing unintended tax loopholes that have emerged from recent court rulings. The legislation aims to restore the original intent of the exemption, which was to prevent double taxation on insurance businesses that pay a premium tax. The bill introduces new language to specify that the exemption applies only to gross premiums received by insurers that have paid insurance premium taxes to the state. It also consolidates similar tax exemptions previously found in RCW 82.04.320 and 82.04.322 into a single exemption, streamlining tax administration for insurers.

Additionally, the bill retroactively applies the new provisions to tax periods beginning on or after October 2, 2019, ensuring equitable treatment for businesses that followed prior guidance from the Department of Revenue. The legislation also repeals RCW 82.04.322, which contained previous exemptions for health maintenance organizations and similar entities. The new definitions provided in the bill clarify terms such as "insurance business," "insurer," and "premium," further refining the scope of the tax exemption.

Statutes affected:
Original bill: 82.04.322