Exemption
Fraternal benefit societies
Insurance Premiums Tax exemption · RCW 48.36A.240 · enacted 1987
Details
- Citation
- RCW 48.36A.240
- Study reference
- E1284-1
- Tax type
- Insurance Premiums Tax
- Preference type
- Exemption
- Category
- Nonprofit
- Year enacted
- 1987
- End date
- None scheduled
Fiscal impact (2024 study estimates)
- Revenue if repealed — local ($M)
- FY 2024: 0 · FY 2025: 0 · FY 2026: 0 · FY 2027: 0
- Revenue if repealed — state ($M)
- FY 2024: 0 · FY 2025: 3.569 · FY 2026: 3.893 · FY 2027: 3.893
- Taxpayer savings — local ($M)
- FY 2024: 0 · FY 2025: 0 · FY 2026: 0 · FY 2027: 0
- Taxpayer savings — state ($M)
- FY 2024: 3.893 · FY 2025: 3.893 · FY 2026: 3.893 · FY 2027: 3.893
CTI = confidential taxpayer information · D = unable to disclose
From the 2024 DOR Tax Exemption Study
48.36A.240 - Fraternal benefit societies Description Fraternal benefit societies governed by Chapter 48.36A RCW are exempt from all state and local taxation other than taxes on real estate and office equipment. As a result, fraternal benefit societies are exempt from insurance premiums tax on policies they provide for their members. Purpose To support the programs of fraternal benefit societies. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $3.893 $3.893 $3.893 $3.893 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $3.569 $3.893 $3.893 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. - Based on historical insurance premium data, the annual average of $194 million in premium income is a constant. Data Sources - Office of the Insurance Commissioner, Insurance data Additional Additional Information Information Category: Nonprofit Year Enacted: 1947 Primary Beneficiaries: Fraternal bene
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