This bill introduces a new tax on select financial intangible assets valued over $50,000,000 in Washington, aiming to promote fairness in the state's tax code and support K-12 education. The tax is set at $8 per $1,000 of the true and fair value of these assets, which include publicly traded corporate stocks and other financial investments. Exemptions are provided for the first $50,000,000 in true and fair value of taxable assets, pensions, and retirement accounts. Revenue generated from this tax will be directed to the education legacy trust account to enhance educational programs and support common schools.

Additionally, the bill establishes a framework for individuals seeking relief from joint tax liabilities, particularly in cases of erroneous reporting by a spouse or domestic partner. To qualify for relief, individuals must show that the tax understatement is due to the other party's errors and that they were unaware of the issue. The bill also introduces penalties for substantial understatements of the intangible assets tax valuation, outlines the petition process for relief, and clarifies that Title 84 RCW does not apply to the new tax. The act is titled the "intangible assets property tax act" and includes a severability clause to maintain the effectiveness of the remaining provisions if any part is found invalid.

Statutes affected:
Original Bill: 82.32.160, 43.135.034, 84.36.070