Fraternal benefit societies

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 2016 FY 2017 FY 2018 FY 2019 State Taxes $4.200 $4.300 $4.500 $4.600 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenue. exemption Potential ($ in millions): revenue gains FY 2016 FY 2017 FY 2018 FY 2019 from full repeal State Taxes $0.000 $4.000 $4.500 $4.600 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - Tax base (premiums) growth of 3.5 percent a year. - Premiums from all lines of insurance taxed. - Eleven months of collections in Fiscal Year 2017 due to July 1, 2016 effective date. Data Sources Washington State Office of the Insurance Commissioner Additional Additional Information Information Category: Nonprofit Year Enacted: 1947 Primary Beneficiaries: Fraternal benefit societies Taxpayer Count: