Washington legislation · 2025-26 Regular Session
Washington SB5949: Insurer taxes
Status: In committee, March 10, 2026
Concerning taxes imposed on insurers operating within the state.
What the bill says
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. NEW SECTION.
From the introduced text:
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. 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. (3) The business and occupation tax is a tax on the gross receipts of most businesses in the state. Specific deductions and exemptions may apply. The tax generally applies at each point of sale in the process of providing a good or service and on sales between affiliated businesses. (4) In 2024, in Envolve Pharmacy Solutions, Inc. v. Department of Revenue, 4 Wn.3d 142 (2024), a majority of the Washington supreme court broadly construed the exemption in RCW 82.04.320 to …
Sponsors
- June Robinson (D) · primary sponsor
- Noel Frame (D)
Latest actions
- : Senate Rules "X" file.
- : Placed on second reading by Rules Committee.
- : Passed to Rules Committee for second reading.
- : Minority; do not pass.
- : WM - Majority; 1st substitute bill be substituted, do pass.
- : Executive action taken in the Senate Committee on Ways & Means at 4:00 PM.
- : Public hearing in the Senate Committee on Ways & Means at 4:00 PM.
- : First reading, referred to Ways & Means.
- : Prefiled for introduction.
Votes
- Senate Committee on Ways & Means: That Substitute Senate Bill No. 5949 be substituted therefor, and the substitute bill do pass (February 19, 2026): 14 yea, 9 nay, passed
Subjects: TAX PREFERENCES - EXEMPTIONS, CREDITS, DEDUCTIONS, DEFERRALS, ETC.
Common questions
- What is SB5949?
- SB5949 is a bill in the Washington Legislature (2025-26 Regular Session): Insurer taxes.
- What does SB5949 do?
- In its own words: 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. NEW SECTION.
- What is the status of SB5949?
- In committee as of March 10, 2026. Latest action: Senate Rules "X" file. (March 10, 2026).
- Who sponsored SB5949?
- June Robinson (D), with 1 co-sponsor.
- Where is the official record for SB5949?
- On the Washington Legislature website: https://app.leg.wa.gov/billsummary?BillNumber=5949&Year=2025
Source: official Washington record. Tracked by Delilah, AI for legislation across all 50 states and Congress.