The bill amends RCW 83.100.040 to revise the estate tax structure in Washington, specifically addressing the tax rates and thresholds for estates of decedents dying before and after July 1, 2025. For estates of decedents dying before this date, the tax rates remain unchanged, with a progressive structure based on the taxable estate value. However, for estates of decedents dying on or after July 1, 2025, but before April 1, 2026, the bill introduces new tax rates and thresholds, increasing the initial tax amounts and adjusting the tax rates to be higher than those applicable to earlier decedents. Additionally, for estates of decedents dying on or after April 1, 2026, the bill establishes a new set of tax rates and thresholds that revert to lower rates similar to those for estates of decedents dying before July 1, 2025.

The bill also clarifies that if any property in the decedent's estate is located outside of Washington, the tax amount will be calculated based on the value of the property located in Washington relative to the total value of the decedent's gross estate. This ensures that the estate tax is proportionate to the value of the estate within the state. The tax imposed is characterized as a stand-alone estate tax, independent of any federal estate tax obligations, and incorporates only certain provisions of the internal revenue code as of January 1, 2005, that do not conflict with the state law.

Statutes affected:
Original bill: 83.100.040