WA HB2487

Amends RCW 82.04.320 to clarify that the business and occupation (B&O) tax exemption for insurance business applies only to insurers who themselves paid premium taxes to the state, closing a loophole expanded by the 2024 Envolve Pharmacy Solutions court decision

Requires that only the same insurer receiving gross premiums and paying insurance premium taxes under chapters 48.14 or 48.15 RCW qualifies for the B&O tax exemption, preventing non-insurers like pharmacy benefit managers from claiming the exemption

Repeals RCW 82.04.322, consolidating separate B&O tax exemptions for health maintenance organizations, health care service contractors, and certified health plans into the amended RCW 82.04.320

Applies retroactively to tax periods beginning on or after October 2, 2019, the date the Department of Revenue issued interim guidance requiring proof of premium tax payment to claim the exemption

Does not affect final court judgments no longer subject to appeal entered before the effective date