Washington ballot seeks vote on captive premium tax

Washington voters are being asked whether a new tax on captive insurance policies should be retained. The ballot title for  Advisory Vote 38 reads: “The legislature imposed, without a vote of the people, a tax on captive insurers in the amount of 2% of premiums from owners/affiliates, costing $53,000,000 in its first ten years, for government spending.”

Voters are then asked to vote to advise the legislature to maintain or repeal the tax introduced by Senate Bill 5315 (2021).

“Captive insurers are owned by the entities they insure,” it adds.

The bill introducing the tax was passed by the Washington State Senate in March and passed its House of Representatives in April with only one vote against in the latter and none in the former.

The law required captives in Washington to register with the Office of the Insurance Commissioner and pay the premium tax.  Proposals published in August by the Commissioner outlined how it intends to implement the law.