This bill creates a new Washington State tax on intangible assets by adding a new chapter to be codified as Title 84A RCW. It imposes an intangible assets tax beginning January 1, 2026 (for taxes due in 2027) at a rate of $8 per $1,000 of the true and fair value of a Washington resident’s taxable worldwide intangible assets, with asset values generally measured as of December 31st of the tax year. The Department of Revenue is assigned administration duties including forms, electronic filing and payment, and rulemaking; all revenues collected are required to be deposited into the education legacy trust account (RCW 83.100.230). The bill also amends several existing statutes (including RCW 82.32.160, 43.135.034, and 82.32.655) to integrate administration, appeals, and anti‑avoidance provisions with the new chapter. The bill establishes many defined terms and a range of exemptions described in section 6, including a per‑taxpayer exemption of up to $50,000,000 of financial intangible assets (with rules for spouses/registered domestic partners and department reporting requirements), and enumerated exemptions such as cash and cash equivalents, certain financial instruments, units of ownership in subchapter K and S entities, retirement accounts described by specified IRC sections, nonfinancial intangible assets, certain government obligations, and qualified tuition plans (529/Coverdell). Filing and payment rules include an April 15 return/payment due date, mandatory electronic filing/payment except for department waivers, joint filing rules for spouses/partners with limited separate filing relief, and treatment of transfers to minors and certain trust attribution rules. The bill creates administrative and appeal procedures, provides innocent spouse relief with filing timelines and allocation rules, and adds penalty changes: a late‑filing penalty of 5% per month (to 25% maximum) with waiver conditions, and new substantial‑valuation‑understatement penalties of 30% or 50% for understatements meeting defined thresholds (applying only if the understatement portion exceeds $5,000). It also directs that ambiguous provisions be construed in favor of applying the tax, clarifies that Title 84 RCW does not apply to the new chapter, and prohibits political subdivisions from imposing certain taxes on intangible property as described. The provided text is incomplete in places. The intent section lists certain exemptions (for example, the first $50,000,000, privately held company interests, pensions, 529 accounts, and retirement accounts) but the excerpt does not fully show how all exemptions are implemented in the operative statutory language. Several sections are cut off or referenced but not included (for example, full text of section 8 on joint‑and‑several liability relief, some amended RCW language, and full penalty/enforcement procedures), so specific implementation details, enforcement mechanics, and any other penalties or exceptions not shown here are uncertain.

If enacted, Washington residents who own large amounts of financial intangible assets would face a new annual tax measured at $8 per $1,000 of the true and fair value of their worldwide intangible assets for the 2026 tax year (returns due April 15, 2027). Small holders are largely protected by a claimed exemption that lets a taxpayer exclude up to $50 million of financial intangible assets (spouses treated as one taxpayer unless separate filing is authorized), and many common items are carved out (cash, retirement accounts, 529 plans, nonfinancial intangibles, certain government obligations, and specific ownership interests). All revenue is directed into the state’s education legacy trust account, so the practical effect is new state education funding supplied by owners of significant intangible wealth. The Department of Revenue would administer the tax, require electronic filing and payment, and enforce strict deadlines and penalties: late filing can draw 5% per month up to 25% of the tax, and substantial valuation understatements can trigger 30% or 50% additional tax on the underpaid portion (if the understatement causes more than $5,000 of underpayment). Trusts, transfers to minors, spouses filing jointly, and entities domiciled in Washington face special attribution and joint‑filing rules, and the department can disregard arrangements it views as tax avoidance. Important details are missing from the provided text—notably full operative language on how the intent exemptions are implemented, valuation methods, rules for nonresidents or apportionment, and some penalty and enforcement provisions—so some practical impacts and compliance burdens remain uncertain.