The proposed bill establishes a wealth tax in Washington State, targeting individuals with financial intangible assets, such as stocks and bonds, valued over $100 million. The tax is set at one percent of a resident's taxable worldwide wealth and aims to generate revenue for essential state services, including education, healthcare, and public safety. This legislation seeks to address the regressive nature of Washington's current tax system by imposing the tax on the wealthiest residents, estimated to impact around 3,400 individuals. The funds collected will be deposited into the state's general fund, and the bill includes various definitions, exemptions, and administrative provisions related to the tax, such as exemptions for the first $100 million of financial intangible assets and certain government obligations.

Additionally, the bill introduces amendments concerning tax relief and penalties for individuals seeking relief from joint tax liabilities. It requires individuals to prove the allocation of any tax deficiency between themselves and their partners, while excluding relief for taxes on wealth derived from "disqualified assets." The legislation also establishes a substantial penalty for wealth tax valuation understatement and mandates audits for a percentage of individuals registered to pay the tax starting in 2027. Furthermore, it includes a severability clause and directs the codification of certain sections into a new chapter of the Revised Code of Washington (RCW).

Statutes affected:
Original Bill: 82.32.160, 43.135.034, 84.36.070