In the most recent legislative session, lawmakers passed Second Substitute Senate Bill 5315, which creates a 2% tax on certain insurance premiums. In effect, the law would close a tax loophole for corporations with their own insurance policies, known as captive insurers, so that all insurance companies pay premiums taxes. It is estimated to generate around $53 million over the next decade.
SB 5315 had bipartisan sponsorship and was passed nearly unanimously with only one vote of opposition between both houses. The legislation was requested by Democratic Washington Insurance Commissioner Mike Kreidler, who wants to make sure that all insurance companies pay their share of taxes.
Ensuring big corporations pay their share is an important step toward balancing our state's tax code. Vote “Maintained” on State Advisory Vote 38.
In the most recent legislative session, lawmakers passed Second Substitute Senate Bill 5315, which creates a 2% tax on certain insurance premiums. In effect, the law would close a tax loophole for corporations with their own insurance policies, known as captive insurers, so that all insurance companies pay premiums taxes. It is estimated to generate around $53 million over the next decade.
SB 5315 had bipartisan sponsorship and was passed nearly unanimously with only one vote of opposition between both houses. The legislation was requested by Democratic Washington Insurance Commissioner Mike Kreidler, who wants to make sure that all insurance companies pay their share of taxes.
Ensuring big corporations pay their share is an important step toward balancing our state's tax code. Vote “Maintained” on State Advisory Vote 38.
Because of a Tim Eyman initiative, the Legislature is required to submit any bill it passes that closes tax loopholes or raises revenue to a nonbinding advisory vote. The Legislature had a historically productive 2021 session, resulting in several advisory votes appearing on the ballot. We hope the Legislature will change the law to remove these meaningless measures in the future.