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WashingtonHB 24872025-2026 Regular SessionHouseWALLET

Concerning taxes imposed on insurers operating within the state.

Sponsored By: Nicole Macri (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Relief for past B&O tax debts

Eligible taxpayers with delinquent B&O taxes tied to insurance exemptions on income not subject to premium tax can get relief. The Department of Revenue waives penalties and interest and allows a three‑year repayment plan. The debt must relate to income from October 2, 2019 through March 31, 2026. Apply by December 31, 2026. Evasion and similar penalties are not waived. The program ends January 1, 2029.

More CS and engineering seats from 2028

Money from the workforce education surcharge goes into the state’s workforce education investment account. Beginning in fiscal year 2028, if qualified Washington applicants exceed seats by 100 in computer science or engineering at four‑year state universities, the state must add and fund the same number of seats with this money.

Higher surcharge on large computing firms

Starting January 1, 2026, select advanced computing businesses pay a 7.5% workforce education surcharge on their gross income base under state law. From April 1, 2020 to December 31, 2025, the rate is 1.22%. Total surcharge for an affiliated group is capped at $75,000,000 per year, or $25,000,000 if at least half of last year’s worldwide revenue came from insurance premiums. During a reporting period, hospitals, certain provider clinics, insurers that pay premium taxes, and some persons exempt from premium tax are excluded, but only for their own amounts. The Department of Revenue can require disclosure of affiliated‑group members, and intentional evasion can trigger a penalty equal to 50% of the group’s total surcharge for the year.

Insurer B&O taxes tied to premium tax

Insurance business that pays Washington insurance premium taxes does not owe B&O tax on that same insurance work. Only the person who actually paid the premium tax can claim the exemption. The law also excludes receipts that are not subject to premium tax and ends the old B&O exemption for HMOs and certain health plans. Payments for certain annuities are outside the B&O tax. Some captive insurers are treated as having paid premium tax for periods before May 12, 2021. These changes apply to periods starting October 2, 2019.

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Sponsors & Cosponsors

Sponsor

  • Nicole Macri

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 78 • No: 66

Senate vote • 3/11/2026

3rd Reading & Final Passage

Yes: 27 • No: 22

House vote • 3/6/2026

3rd Reading & Final Passage

Yes: 51 • No: 44 • Other: 3

Actions Timeline

  1. Effective date 6/11/2026.

    4/1/2026House

  2. Chapter 263, 2026 Laws.

    4/1/2026House

  3. Governor signed.

    4/1/2026legislature

  4. President signed.

    3/12/2026legislature

  5. Delivered to Governor.

    3/12/2026legislature

  6. Speaker signed.

    3/11/2026legislature

  7. Third reading, passed; yeas, 27; nays, 22; absent, 0; excused, 0.

    3/11/2026House

  8. Rules suspended. Placed on Third Reading.

    3/11/2026House

  9. Passed to Rules Committee for second reading.

    3/11/2026House

  10. Placed on second reading by Rules Committee.

    3/11/2026House

  11. Minority; do not pass.

    3/10/2026House

  12. WM - Majority; do pass.

    3/10/2026House

  13. First reading, referred to Ways & Means.

    3/9/2026House

  14. Third reading, passed; yeas, 51; nays, 44; absent, 0; excused, 3.

    3/6/2026House

  15. Rules suspended. Placed on Third Reading.

    3/6/2026House

  16. Floor amendment(s) adopted.

    3/6/2026House

  17. Rules Committee relieved of further consideration. Placed on second reading.

    2/27/2026House

  18. Referred to Rules 2 Review.

    2/9/2026House

  19. Minority; without recommendation.

    2/9/2026House

  20. Minority; do not pass.

    2/9/2026House

  21. FIN - Majority; do pass.

    2/9/2026House

  22. FIN - Executive action taken by committee.

    2/9/2026House

  23. First reading, referred to Finance.

    1/14/2026House

  24. Introduced

    1/14/2026House

Bill Text

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