Bill > SB5813

This bill creates a more progressive tax structure by modifying the capital gains tax and estate tax in Washington state, with the primary goal of increasing funding for the education legacy trust account. Specifically, the bill introduces an additional 2.90% excise tax on long-term capital gains exceeding $1,000,000, starting in 2025, and revises the estate tax rate structure to include higher rates for larger estates, with the top tier rate increasing to 35%. The estate tax exclusion amount will be raised to $3,000,000 for estates of decedents dying on or after July 1, 2025. The legislature justifies these changes by highlighting Washington's currently regressive tax system, where low-income residents pay a significantly higher percentage of their income in state and local taxes compared to high-income households. The bill aims to generate more revenue for public education, early learning, child care, and higher education while making the state's tax system more equitable. The changes are intended to address the state's constitutional "paramount duty" to provide ample educational opportunities for children and support their development from early learning through higher education.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5813&Year=2025&Initiative=false