Washington voters have soundly rejected the state’s tax rise on captives. Asked to give their views on introducing the 2% premium tax, voters opposed it by a 19 point margin. It was just one of a number of new taxes rejected by voters under the advisory votes on tax increases that must be held under state law.
All the tax hikes on the ballot were opposed by double-digit margins. As well as the vote on captives, measures rejected included a telephone tax to support a suicide prevention line and a 7% tax on capital gains that bring more than $250,000 in profit. The latter lost by 26 points.
The votes are non-binding, however, and are unlikely to have an impact. Captives will still have to comply with the bill passed in May requiring them to register with the Office of the Insurance Commissioner and pay the tax.
captive premium tax, Office of the Insurance Commissioner, Insurance, Reinsurance, North America