Bill > SB5797

This bill establishes a new tax on financial intangible assets in Washington State beginning January 1, 2026, with taxes first due in 2027, designed to generate revenue for public education. The tax will be levied at a rate of $5 per $1,000 of a resident's taxable worldwide intangible assets, with several key provisions: it includes a substantial exemption of up to $50 million in assets, excludes retirement accounts, education savings accounts, and certain other financial investments, and is specifically intended to create a more progressive tax system. The bill targets wealthy residents, with estimates suggesting only 4,300 Washingtonians will be impacted, and aims to address the state's regressive tax system where low-income residents currently pay proportionally more in taxes. All revenue collected will be deposited into the education legacy trust account to support public schools, early learning, child care, and higher education. The legislation includes comprehensive definitions of intangible assets, detailed filing requirements, provisions for joint spousal returns, penalties for underreporting, and mechanisms to prevent tax avoidance. The bill explicitly seeks to fulfill the state's constitutional obligation to provide ample funding for public education while creating a more equitable tax structure.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5797&Year=2025&Initiative=false