The proposed bill introduces a new property tax on extreme wealth in Washington, specifically targeting financial intangible assets like stocks and bonds. Set to take effect on January 1, 2025, the tax will impose a one percent levy on a resident's taxable worldwide wealth, with the first $250 million exempted. The revenue generated will be directed towards community programs such as education, housing, and support for residents with disabilities, addressing the current inequities in the tax system that disproportionately burden low- and middle-income families compared to wealthier households.

In addition to establishing the wealth tax, the bill outlines definitions, filing procedures, and exemptions related to the tax. It includes provisions for tax credits for similar taxes paid to other states and introduces a framework for individuals seeking relief from joint tax liabilities, requiring them to prove they were unaware of any tax understatement by their spouse or partner. The legislation also imposes penalties for significant understatements of wealth tax valuations and mandates the distribution of collected taxes among various trust accounts. Overall, the bill aims to modernize Washington's tax code, ensuring equitable contributions from the wealthiest residents while providing mechanisms for tax relief under specific circumstances.

Statutes affected:
Original Bill: 82.32.160, 43.135.034, 84.36.070