Health care provider qualified health plan amounts

From the 2024 DOR Tax Exemption Study

Det. No. 21-0153, 42 WTD 074 (December 22, 2023) 74 Cite as Det. No. 21-0153, 42 WTD 074 (2023) BEFORE THE ADMINISTRATIVE REVIEW AND HEARINGS DIVISION DEPARTMENT OF REVENUE STATE OF WASHINGTON In the Matter of the Petition for Correction of ) D E T E R M I N A T I O N Assessment of ) ) No. 21-0153 . . . ) ) Registration No. . . . ) [1] WAC 458-20-111; RCW 82.04.080; EXCISE TAXES – BUSINESS AND OCCUPATION TAX – GROSS INCOME OF THE BUSINESS – EXCLUSIONS – ADVANCES AND REIMBURSEMENTS. When a pharmacy benefit manager’s services included paying pharmacies for drugs dispensed to healthcare plan members, for which it received payments from its customers as compensation under the service agreements, the payments received from customers were compensation for services rendered and were not excludable advancements and/or reimbursements and were properly included as part of its gross income. [2] WAC 458-20-108; RCW 82.04.080; EXCISE TAXES – BUSINESS AND OCCUPATION TAX – GROSS INCOME OF THE BUSINESS – SELLING PRICE – DISCOUNTS. When a pharmacy benefit manager received rebates under agreements with pharmaceutical manufacturers, which rebates were contingent upon the manger’s submission of claims