WA SB5949

Closes a tax loophole created by the 2024 Envolve Pharmacy Solutions v. Department of Revenue court decision that allowed pharmacy benefit managers and other non-insurers to claim business and occupation (B&O) tax exemptions on payments received from insurance companies

Amends RCW 82.04.320 to clarify that only insurers who actually pay premium taxes to the state can claim the B&O tax exemption on their gross premiums, restating the exemption in "active voice" to prevent broad interpretation

Repeals RCW 82.04.322 and consolidates similar tax exemptions for health maintenance organizations, health care service contractors, and certified health plans into the amended single exemption

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

Preserves final court judgments entered before the effective date and validates prior enforcement actions by the Department of Revenue