The proposed bill aims to make the estate tax in Washington State more progressive by adjusting the applicable exclusion amounts and tax rates for estates based on the date of death. Key changes include an increase in the applicable exclusion amount for decedents dying on or after January 1, 2025, with a new structure that sets the exclusion at $3,000,000 and introduces higher tax rates for larger estates. For example, estates valued at $1,000,000 will incur a 16% tax rate, while those valued at $9,000,000 will face a 38% tax rate. The bill also specifies that the applicable exclusion amount will be adjusted annually based on the consumer price index starting in 2026.

Additionally, the bill clarifies that it applies both prospectively and retroactively to estates of decedents dying on or after January 1, 2025, and ensures that existing rights or obligations under the previous law remain unaffected. It includes provisions for the immediate effect of the act, emphasizing its necessity for the preservation of public peace, health, or safety. The bill also contains new definitions and clarifications regarding terms such as "Washington taxable estate" and "consumer price index," which are essential for the implementation of the revised estate tax structure.

Statutes affected:
Original Bill: 83.100.048