The proposed bill establishes a tax on stocks, bonds, and other financial intangible assets in Washington State, aimed at generating revenue for public schools. It sets a tax rate of $10 for every $1,000 of the true and fair value of these assets, while exempting retirement savings, college savings, and ownership interests in private companies and partnerships. Individuals with combined financial intangible assets valued at less than $50,000,000 will not be subject to this tax. The legislation emphasizes the need for a fair tax system to address wealth inequality and ensure adequate funding for education and public services.

Additionally, the bill introduces a framework for the taxation of intangible assets, including provisions for "Innocent Spouse Relief," which allows individuals to seek relief from joint tax liabilities under certain conditions. It also imposes penalties for substantial understatements in tax valuation, with penalties varying based on the severity of the misstatement. The bill clarifies that existing provisions of Title 84 RCW do not apply to this new chapter on intangible assets tax and includes a severability clause to maintain the act's effectiveness if any part is found invalid. The act is titled the "Intangible Assets Property Tax Act" and is deemed necessary for supporting state government and public institutions.

Statutes affected:
Original Bill: 82.32.160, 43.135.034, 84.36.070