Bill > HB2046

This bill creates a new intangible assets tax in Washington state, imposing a tax rate of $8 per $1,000 of the true and fair value of financial intangible assets for Washington residents, beginning January 1, 2026. The tax would apply to assets such as publicly traded stocks, bonds, mutual funds, and exchange-traded funds, with several significant exemptions, including the first $50,000,000 of a taxpayer's financial intangible assets, retirement accounts, education savings accounts, and certain other investment vehicles. The legislature intends this tax to address Washington's regressive tax system, where low-income residents pay a higher percentage of their income in taxes compared to high-income households. All revenue collected from this tax will be deposited into the education legacy trust account to support common schools, expand access to higher education, invest in early learning and child care programs, and support other educational improvement efforts. The bill includes detailed provisions for filing tax returns, penalties for underreporting, exemptions for assets taxed in other states, and mechanisms for innocent spouse relief. The proposed legislation aims to create a more equitable tax structure by targeting high-value intangible assets while providing numerous protections and exemptions for typical investors and retirement savings.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2046&Year=2025&Initiative=false