The bill creates a new state wealth tax and related administration. It adds a new chapter to be codified as Title 84A RCW and statutorily imposes, beginning January 1, 2026 (for taxes due in 2027), a one percent tax on a Washington resident’s taxable worldwide wealth, defined as the fair market value of intangible assets owned or controlled by a resident less intangible property exempt from the tax. All revenues are deposited to the state general fund. The Department of Revenue administers the tax, prescribes forms, generally requires electronic filing and electronic payment (with waivers for good cause), and may adopt rules for administration. The act creates filing and assessment procedures and penalties. Returns reporting the preceding calendar year’s taxable worldwide wealth are due April 15 each year; spouses and state-registered domestic partners generally file joint returns (with limited procedures for separate filing and joint liability relief). Payments are due by the return due date regardless of any filing extension; late payment and other interest and penalties in chapter 82.32 RCW apply. A failure-to-file penalty of 5% per month up to 25% applies unless waived for specified reasons; there are additional valuation-understatement penalties—50% for a gross wealth valuation misstatement (reported value ≤40% of correct) or 30% for a substantial understatement (reported value ≤65% of correct) where the understatement portion exceeds $5,000. The bill specifies many definitions and special rules: grantor-trust owners are treated as owners for the tax; transfers of intangible assets after the effective date to family members under age 18 are treated as the transferor’s property for calendar years prior to the minor turning 18; decedent and trustee rules are provided; exemptions listed include up to $100,000,000 of a taxpayer’s financial intangible assets, nonfinancial intangible assets, certain federal and state obligations and agency securities, and property subject to ad valorem taxation, and a credit is allowed for a similar wealth tax paid to another state subject to limitations. It also amends RCW 82.32.655 to address tax-avoidance/disregarded transactions, amends the definition of “raises taxes” in RCW 43.135.034, prohibits political subdivisions from taxing certain intangible property, establishes an audit schedule contingent on specific appropriations, directs that Title 84 RCW does not apply to this chapter, and includes severability and codification directions. Several statutory details are incomplete or unclear in the provided text: the chunked text truncates the full definition of “good cause” for waivers and separate filing, the statutory status of the $100,000,000 threshold referenced in the intent is not fully clear from the operative sections provided, and the excerpts omit any remaining exemptions, enforcement, penalty, administrative, or effective-date provisions that may appear elsewhere in the bill.

If enacted, the bill would create a new 1% annual tax on the worldwide intangible-asset wealth of Washington domiciliaries and route the proceeds into the state general fund to support items the legislature lists as priorities (education, health care, long-term care, public safety, etc.). It appears to exempt certain items including nonfinancial intangibles, specified government obligations, property already taxed locally, and—based on other sections referenced—up to $100 million of a taxpayer’s financial intangible assets, but the provided text is incomplete so the operative status of that $100 million threshold and some exemption details are unclear. Taxpayers would file annual returns by April 15, generally file and pay electronically, face stiff late-filing and late-payment penalties, valuation-understatement penalties (30% or 50% where applicable), and an elevated audit regime beginning in 2027 if specific appropriations are provided. The people most affected are a relatively small number of very high-wealth Washington residents (the bill’s intent estimates about 3,400 individuals) who would likely see higher recurring tax bills, greater compliance costs for valuation and electronic filing, and increased audit and penalty risk; spouses and registered domestic partners would generally have to file jointly unless narrow relief is granted. The Department of Revenue would take on new administration, collection, audit, and rulemaking responsibilities and would need funding to meet the planned audit rates; anti‑avoidance rules in the bill would limit some tax‑planning options. Important implementation details in the provided text—such as the full definition of “good cause” for waivers and the complete list of exemptions—are missing, leaving some practical effects uncertain.