The bill creates new revenue and tax rules and amends Washington law. It adds a new 2.90% capital gains excise tax on the portion of an individual’s Washington capital gains exceeding $1,000,000, effective January 1, 2025, while retaining the existing 7% capital gains excise tax that has been effective since January 1, 2022. Revenues are dedicated to the education legacy trust account for public K-12 education, early learning and child care, and higher education. The bill also specifies loss treatment under the capital gains chapter: negative Washington capital gains generate no tax and may not be carried over, except that certain federal loss carryforwards tied to Washington allocations are included; federal loss carrybacks may not be included. The bill reenacts and amends the Washington estate tax chapter, changing exclusion amounts and the rate schedule and adding a CPI-based indexing method for future years. It sets the applicable exclusion amount at $3,000,000 for decedents dying on or after January 1, 2025 and before January 1, 2026, and directs that for deaths in 2026 and each calendar year thereafter the $3,000,000 tier be adjusted annually based on the October 2024 Seattle consumer price index. Two estate tax rate tables are specified: for deaths before January 1, 2025 the top rate is 20.00% for estates $9,000,000 and above; for deaths on or after January 1, 2025 the schedule increases top rates up to 35.00% for estates $9,000,000 and above (the bill lists the full bracketed initial-tax plus marginal rate amounts for each schedule). If some estate property is located outside Washington, the tax is multiplied by a fraction with the numerator equal to the value of property located in Washington and the denominator equal to the decedent’s gross estate, excluding property qualifying for a deduction under RCW 83.100.046. The bill amends and reenacts multiple definitions and statutory cross-references (including RCW 82.87.040; RCW 83.100.020 and RCW 83.100.040 as amended; and references to RCW 83.100.046, .047, .048, and .120) and incorporates Internal Revenue Code provisions as of January 1, 2005 for the estate tax’s standalone computation. It names the Department of Revenue as the administering department and identifies affected groups (individual taxpayers subject to capital gains excise tax; estates, decedents, personal representatives; and pass-through or disregarded entities to the extent beneficial ownership rules apply). The bill includes timing provisions: one section applies to taxes imposed in calendar year 2025 for collection in calendar year 2026, sections 201 and 202 apply prospectively and retroactively to estates of decedents dying on or after January 1, 2025, and the act is stated to take effect immediately. Some text is missing from the extracted material: the amendment to RCW 83.100.040 is incomplete in these extracts, the bill’s new sections and the full effective date text are not all included here, and the extraction does not show any statutory language that would define the procedures, allocation mechanics for the education legacy trust account, or other administrative details beyond those summarized above.

If enacted, high‑income Washington residents who realize more than $1,000,000 in state‑sourced capital gains would face an additional 2.90% excise tax on the amount above $1,000,000 beginning January 1, 2025, on top of the existing 7% tax that took effect in 2022; that new revenue is designated for the education legacy trust account supporting K‑12, early learning/child care, and higher education, so those programs would likely see increased funding. The Department of Revenue will have new administration and collection responsibilities, and affected taxpayers will see higher tax bills on large gains (with limited loss carryover rules that generally prevent using state capital losses to reduce adjusted capital gain except in narrow federally‑attributable cases). Estates of people dying on or after January 1, 2025 would see the estate tax exclusion rise to $3,000,000 (then indexed annually to Seattle CPI) but face a steeper, more progressive rate schedule with top marginal rates up to 35%; estates with assets partly outside Washington would have the tax prorated to the in‑state portion, and personal representatives and heirs may confront larger estate tax liabilities and planning or compliance costs. Some implementation details are missing from the provided text—notably the full statutory language allocating revenues to the education account and any other new sections—so timing, administrative rules, and the precise application of certain provisions are not fully clear from these excerpts.