This bill aims to enhance funding for public education, child care, early learning, and higher education in Washington by implementing a more progressive capital gains tax and estate tax structure. It introduces an additional excise tax of 2.90% on long-term capital gains exceeding $1,000,000, effective January 1, 2025. The bill also modifies the estate tax by increasing the top tier rates up to 35% and raising the exclusion amount to $3,000,000 for estates of decedents dying on or after January 1, 2025. These changes are intended to create a fairer tax system and provide ongoing support for the education legacy trust account.

The bill amends existing laws, specifically RCW 82.87.040 and RCW 83.100.040, and reenacts RCW 83.100.020, while also creating new sections to clarify the application of these tax changes. It establishes that the new tax rates will apply to taxes imposed in calendar year 2025 for collection in calendar year 2026, and it ensures that the changes apply retroactively to estates of decedents dying on or after January 1, 2025. The act is deemed necessary for the support of state government and public institutions, taking effect immediately upon passage.

Statutes affected:
Original Bill: 82.87.040, 83.100.048