Committee hears competing views on insurer exemption fix and retroactivity
HB 2487 would tighten the insurance‑premium exemption to the state's B&O tax following a 2024 Washington Supreme Court decision. The Department of Revenue and consumer‑advocacy groups supported closing a perceived loophole; insurers warned retroactive application to 2019 could raise premiums and pose fairness concerns.
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House Bill 2,487 would modify the insurance premium exemption to the business‑and‑occupation tax to expressly limit it to gross premiums on which the insurer paid the state premium tax. Staff explained the change responds to the Washington Supreme Court's 2024 decision in Involve Pharmacy Solutions Inc. v. Department of Revenue and would apply both prospectively and retroactively to Oct. 2, 2019, although it would not affect final judgments already beyond appeal.
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