The proposed bill seeks to enhance fairness in Washington's tax code by introducing a tax on select financial intangible assets valued over $50,000,000, specifically imposing a rate of $8 per $1,000 of the true and fair value of these assets, which include publicly traded corporate stocks and other financial investments. The bill exempts the first $50,000,000 in true and fair value of taxable assets, as well as ownership interests in privately held companies, pensions, education savings accounts, and retirement accounts. The revenue generated from this tax is earmarked for the education legacy trust account, which supports various educational initiatives, including K-12 education and higher education access.

Additionally, the bill establishes a framework for individuals seeking relief from joint and several tax liabilities, particularly in cases where one spouse or domestic partner has reported erroneous tax information. It outlines the criteria for qualifying for relief, including the requirement to demonstrate that the tax understatement was due to the other party's reporting and that the individual was unaware of the discrepancy. The bill also introduces penalties for substantial understatements in intangible asset tax valuations and includes provisions to disregard tax avoidance transactions. New sections clarify the applicability of existing laws to intangible assets and establish a severability clause, while the act is officially titled the "intangible assets property tax act." Overall, the bill aims to create a more equitable tax structure and provide a structured process for tax liability relief.

Statutes affected:
Original Bill: 82.32.160, 43.135.034, 84.36.070