The bill aims to make the estate tax in Washington State more progressive by adjusting the applicable exclusion amounts and tax rates based on the value of the estate. It amends RCW 83.100.040 and reenacts RCW 83.100.020, introducing new exclusion amounts for decedents dying on or after January 1, 2025, with a tiered tax structure that increases rates for higher estate values. For example, estates valued at $1,000,000 to $2,000,000 will incur a 16% tax rate, while those valued at $9,000,000 and above 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.

Additionally, the bill clarifies definitions related to the estate tax, including the "Washington taxable estate" and the "applicable exclusion amount," which is now defined as the amount in effect at the time of the decedent's death. It includes provisions that ensure the act applies both prospectively and retroactively to estates of decedents dying on or after January 1, 2025, while also protecting existing rights and obligations under the previous law. The act is declared necessary for the immediate preservation of public peace, health, or safety, and takes effect immediately.

Statutes affected:
Original Bill: 83.100.048