BOE's Unanimous Vote Gives Employers Big Win Over Taxing Workers, Compensation Insurance Deductibles

By Loretta Macktal, Executive Assistant to the Vice President, Government Relations

Capitol Update, Jan. 10, 2003 Share this on FacebookTweet thisEmail this to a friend

The Board of Equalization handed employers and insurers a big victory at a hearing December 18. They voted unanimously in favor of the Appeal of Wausau Companies challenging the imposition of premium taxes on the deductible portion of workers' compensation large deductible policies. While the dispute only named calendar year 1997, an adverse decision in this case would have allowed the Department of Insurance to collect taxes for the five previous years and all years going forward. The potential economic impact on insurers and employer's workers? compensation costs at this time would have been a disaster.

CMTA joined with a coalition of insurers and insurer trade associations to successfully argue that as a matter of law and of public policy such important decisions should not be made by bureaucratic fiat. CMTA thanks and congratulates those employers who took the time to make their positions known to the Board on this important issue. As a result of our collective efforts, CMTA members currently using such policies and employers who may seek to do so in the future may continue reap the benefits of lower premium costs.
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