Concerning taxes imposed on insurers operating within the state.

 S-5348.1

SUBSTITUTE SENATE BILL 5949

State of Washington

69th Legislature

2026 Regular Session

By Senate Ways & Means (originally sponsored by Senators Robinson and Frame; by request of Department of Revenue)

READ FIRST TIME 02/23/26.

AN ACT Relating to taxes imposed on insurers operating within the state; amending RCW 82.04.320 ; creating new sections; and repealing RCW 82.04.322 .

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

NEW SECTION. Sec. 1. (1) The legislature finds that unintended tax loopholes adversely impact the state budget and reduce amounts available to fund schools and other essential services.

(2) The legislature further finds that in 1935 the legislature enacted as RCW 82.04.320 a business and occupation tax exemption that applied to "any person in respect to insurance business upon which a tax based on gross premiums is paid to the state." The Washington supreme court, in Armstrong v. State , 61 Wn.2d 116 (1962), unanimously held that the purpose of the exemption was to prevent insurance businesses from paying two state taxes on the same income, not to create a means for noninsurers to avoid paying any state tax.