Seattle Wrongfully Taxed HMO, Appeals Court Rules

OLYMPIA, Wash. (CN) - The city of Seattle wrongfully taxed an HMO called The Group Health Cooperative, the Washington Court of Appeals ruled.

Group Health asserted that Seattle should not have assessed business and occupation taxes against the premium payments paid by the HMO members.

Judge Dwyer agreed, noting that the state already taxes payments to HMOs at a 2 percent rate, and cities are forbidden from taxing them further.

Also, Dwyer ruled that Group Health had already received a refund of the interest of its 2005 tax overpayment and was not entitled to refund of its entire payment.

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