The proposed bill aims to create a more equitable tax structure in Washington by introducing a tax on financial intangible assets valued over $50,000,000, with a rate of $8 per $1,000 of the true and fair value of these assets, which include publicly traded stocks and other financial investments. The bill exempts the first $50,000,000 of taxable assets and certain types of assets such as pensions, education savings accounts, and retirement accounts. The revenue generated from this tax is designated to support the education legacy trust account, which funds K-12 education, early learning programs, and higher education initiatives. The tax is set to take effect on January 1, 2026, for taxes due in 2027.

Additionally, the bill establishes a framework for individuals seeking relief from joint and several tax liabilities, particularly in cases of erroneous reporting by a spouse or domestic partner. It outlines specific criteria for relief, including the requirement that it would be inequitable to hold the individual liable for the tax deficiency. The legislation introduces a new penalty for substantial intangible assets tax valuation understatements, which can be 50% or 30% of the underpayment depending on the severity of the misstatement. The bill also clarifies procedures for petitioning the department for tax assessments and denials of relief, specifies that Title 84 RCW does not apply to the new intangible assets tax, and includes a severability clause to ensure the act's effectiveness even if parts are found invalid.

Statutes affected:
Original Bill: 82.32.160, 43.135.034, 84.36.070