Washington Enacts Law Amending Insurer Tax Laws, Loophole

The Washington Governor signed a law amending tax laws governing insurers by clarifying that only businesses directly paying insurance premium taxes can claim business and occupation tax exemptions, addressing a loophole created by the Washington Supreme Court’s decision in Envolve Pharmacy Solutions, Inc. v. Department of Revenue. The law establishes a penalty and interest waiver program allowing affected businesses to enter three-year repayment plans for delinquent taxes owed between Oct. 2, 2019, and Mar. 31, 2026. [H.B. 2487, enacted 04/01/26]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.