The 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. It amends existing laws to establish new exclusion amounts for decedents dying on or after January 1, 2025, with a tiered structure that increases the tax rates for higher estate values. For example, estates valued at $1,000,000 to $2,000,000 will incur a tax rate of 16%, while estates valued at $9,000,000 and above will face a tax rate of 38%. The bill also includes provisions for annual adjustments to the exclusion amounts based on the consumer price index.

Additionally, the bill clarifies definitions related to the estate tax, such as "Washington taxable estate" and "consumer price index," and ensures that the new tax structure applies both prospectively and retroactively to estates of decedents dying on or after January 1, 2025. It also includes provisions to protect existing rights and obligations under the amended sections and states that if any part of the act is found invalid, the remainder will still be effective. 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