Insurance guarantee association assessments

From the 2024 DOR Tax Exemption Study

48.32.145; 48.32A.125 - Insurance guarantee association assessments Description Property, casualty, life, and disability insurers may claim credit against their insurance premium tax for assessments made by the Washington Insurance Guarantee Association to pay covered claims of insolvent insurers. The credit may be taken over five years. Purpose To ensure that claims against insolvent insurance companies are paid and the cost does not burden policyholders of the surviving companies. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.042 $0.042 $0.042 $0.042 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this credit would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.038 $0.042 $0.042 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 0.05% based on historical insurance credit data. Data Sources - Office of the Insurance Commissioner, Insurance data Additional Additional Information Informati