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. (1) In Envolve Pharmacy Solutions, Inc. v. Department of Revenue (2024), the Washington supreme court construed the insurance premium exemption from the business and occupation tax in RCW 82.04.320 to apply to an affiliate of an insurer. The Court correctly reasoned the affiliate qualified for the tax exemption because it was a person performing work in respect to insurance business upon which a premium tax had been paid.

(2) The legislature finds that on October 2, 2019, the department of revenue issued public guidance in the form of an interim guidance statement that explained, in part, that a person claiming the exemption in RCW 82.04.320 must show proof that it paid premium tax to the state with respect to the gross income it claims as exempt from business and occupation tax. The supreme court's decision in Envolve Pharmacy Solutions, Inc. forced the department to rescind that guidance.

(3) To address fairness and equity in following the law and outcome of the Washington supreme court's decision in Envolve Pharmacy Solutions, Inc, the department of revenue shall refund by December 31, 2026, any insurer who paid business and occupation tax in reliance on the department's interim guidance after October 2, 2019, and before such guidance was revoked."

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