H-4490              _______________________________________________

                                                   HOUSE BILL NO. 1887

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Appelwick and Holland

Read first time 1/29/88 and referred to Committee on Ways & Means.

AN ACT Relating to the taxation of medical and dental coverage; and amending RCW 48.14.022.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 23, chapter 431, Laws of 1987 and RCW 48.14.022 are each amended to read as follows:

          (1) The taxes imposed in RCW 48.14.020 do not apply to premiums collected or received for policies of insurance issued under RCW 48.41.010 through 48.41.210 or medical and dental coverage purchased under chapter 41.05 RCW.

          (2) In computing tax due under RCW 48.14.020, there may be deducted from taxable premiums the amount of any assessment against the taxpayer under RCW 48.41.010 through 48.41.210.  Any portion of the deduction allowed in this section which cannot be deducted in a tax year without reducing taxable premiums below zero may be carried forward and deducted in successive years until the deduction is exhausted.