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 apply to 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.
(5)"
Renumber the remaining subsections consecutively and correct any internal references accordingly.
On page 3, line 35, after "48.01.050" insert "and also includes health maintenance organizations regulated under chapter 48.46 RCW and health care service contractors regulated under chapter 48.44 RCW"
On page 4, line 8, after "RCW" insert ", and allow any person who owes delinquent taxes due under this chapter to enter into a three-year repayment schedule for taxes owed,"
On page 4, line 9, after "The" strike "penalties and interest" and insert "taxes owed, and any penalties and interest,"
On page 4, line 14, after "The" strike "penalties and interest" and insert "taxes owed, and any penalties and interest,"
On page 4, line 18, after "waiver" insert ", and repayment schedule,"
On page 4, line 20, after "waiver" insert ", and repayment schedule,"
On page 4, beginning on line 23, after "payment" strike all material through "invoice" on line 24 and insert "in accordance with the repayment schedule"
On page 4, line 30, after "waiver" insert ", and repayment schedule,"
On page 5, line 17, after "annually" insert ", unless 50 percent or more of the worldwide gross revenue of all members of an affiliated group is from the payment of insurance premiums during the immediately preceding calendar year, in which case the combined surcharge imposed under this subsection (1) paid by all members of an affiliated group may be no more than $25,000,000 annually"
On page 6, line 25, after "otherwise;" strike "and" and insert "((and))"
On page 6, line 26, after "(vi)" insert ""Premium" has the same meaning as in RCW 48.18.170; and
(vii)"
Correct any internal references accordingly.
On page 7, line 16, after "48.01.050," insert "or any health maintenance organization regulated under chapter 48.46 RCW or health care service contractor regulated under chapter 48.44 RCW,"
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.
(3) Modifies the insurance premium exemption from the workforce education investment surcharge to also cover qualifying health maintenance organizations and health care service contractors.
(4) Modifies the combined surcharge cap for the workforce education investment surcharge by providing that, when fifty percent or more of the worldwide gross revenue of all members of an affiliated group is from the payment of insurance premiums during the immediately preceding calendar year, the combined surcharge paid by all members of an affiliated group may be no more than $25,000,000 annually. Defines "premium" as all sums charged, received, or deposited as consideration for an insurance contract or the continuance thereof, excluding certain regulatory surcharges.
(5) Directs the Department of Revenue to allow any person who owes delinquent B&O taxes to enter into a three-year repayment schedule for taxes owed as a result of a person taking an insurance premium exemption on gross income not subject to that exemption, but only for taxes due on gross income of the business between October 2, 2019, and March 31, 2026. The provision of a three-year repayment schedule under this section is subject to various requirements and limitations.
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