Washington Supreme Court: Actual Cash Value Includes Sales Tax

The Washington Supreme Court has ruled that an insurer is required to pay sales tax when reimbursing a client for the actual cash value (ACV) of damaged property. According to court documents in Laura Holden v. Farmers Insurance Co. of Washington, Holden purchased a renter's insurance policy from Farmers that provided coverage for ACV of damaged property due to fire. ACV was defined as fair market value in the policy.