This bill creates a new chapter in Title 82 RCW and prohibits imposing any excise tax under Title 82 after the effective date of the new section if the tax is intended to, or has the effect of, applying to a single person, business, or entity, or if it applies only to a group of individuals affiliated with a single business or entity. It includes a legislative finding that Washington tax policy should not be used to target or punish particular individuals, businesses, or entities, and it defines “business” to include sole proprietorships, corporations, partnerships, and other legal entities. The legal change is the addition of a new statutory prohibition in the state’s excise tax law—a substantive limitation on what excise taxes may be assessed—rather than the creation of a new crime or a specified penalty. The bill text as provided does not include enforcement mechanisms, penalties, or procedures for implementing the prohibition. The bill was read for the first time on 04/16/25 and referred to the Committee on Finance. Important gaps in the excerpt include no specified calendar effective date for the section, no chapter number assigned to the new chapter, no further definitions or interpretive guidance for terms such as “intent to” or “effect of,” and no explanation of the “Tesla tax” referenced in the bill title.

If enacted, the state would no longer be able to impose an excise tax whose purpose or practical effect is to single out one particular person, business, or an affiliated group tied to one business. That would reduce the risk that a large company, sole proprietor, or other specific entity would be taxed as a unique target and would remove a potential source of revenue that lawmakers might otherwise try to raise by targeting a single taxpayer; agencies that administer Title 82 taxes and the Legislature would need to avoid creating or approving such targeted levies. The bill also adds this rule as a new chapter in Title 82 RCW. The people most affected are the businesses and individuals who might have been singled out—they would have greater protection from targeted excise taxes—and the state and Legislature, which would lose a narrow tool for raising funds. Key implementation details are missing: the text does not state a calendar effective date, does not explain how to determine whether a tax was intended to target someone or had that effect, and includes no enforcement or penalty provisions, so how disputes get resolved and who enforces the prohibition is unclear.