// 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- Revenue if repealed — local ($M)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- Revenue if repealed — state ($M)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
82.04.370 - Fraternal insurance Description Insurance premium income received by fraternal benefit societies and fraternal fire insurance associations is exempt from B&O tax. Fraternal societies pay death and disabilities benefits and insure property for their members. These premiums are also exempt from insurance premiums tax. Purpose To support the programs and activities of these organizations. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $3.560 $3.630 $3.690 $3.770 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 $2.850 $3.690 $3.770 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 1.9% based on historical insurance premiums data. Data Sources - Office of the Insurance Commissioner, Insurance data Additional Additional Information Information Category: Other Year Enacted: 1935 Primary Beneficiaries: Fraternal benefit soci
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