The Legislature has passed 2SSB 5315, which will subject captive insurers to the 2% premium tax. Captive insurers are insurance companies controlled by the entities they insure. We wrote about the policy in a policy brief earlier this year.

The bill is expected to increase revenues to funds subject to the outlook by $34.2 million in 2021–23 and by $4.7 million in 2023–25. The Senate-passed operating budget assumes passage of the bill, but the House-passed budget does not incorporate the revenues from the bill. All else equal, the passage of 2SSB 5315 will improve the House-passed budget outlook.