Health maintenance organizations

From the 2024 DOR Tax Exemption Study

82.04.322 - Health maintenance organizations Description Health maintenance organizations, health care service contractors, and certified health plans are exempt from B&O tax on income subject to the state insurance premiums tax. Purpose To avoid subjecting insurance premiums to more than one state business tax. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $420.140 $442.180 $465.360 $489.770 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues if RCW 48.14.080 were also exemption amended to allow B&O taxation of premium income. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $405.330 $465.360 $489.770 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate reflects the compound annual growth rate of 5.2% based on historical insurance premiums data. Data Sources - Office of Insurance Commissioner, Insurance data Additional Additional Information Information Category: Tax base Year Enacted: 1993 Primary Beneficiaries: Health maintenance or