This bill amends RCW 83.100.040 (and 2025 c 421 s 202) to specify how Washington’s estate tax is calculated for transfers of property located in Washington. It treats intangible property owned by a resident as located in Washington and establishes three tax rate schedules tied to the decedent’s date of death: one schedule for deaths before July 1, 2025, an alternative higher-rate schedule for deaths on or after July 1, 2025 but before July 1, 2026, and a reinstated schedule for deaths on or after July 1, 2026 that matches the pre-July 1, 2025 table. The printed tables show graduated brackets with initial tax amounts and percent marginal rates (the middle schedule includes higher marginal rates and a higher top rate than the other two schedules). The bill also sets an apportionment rule when some estate property is located outside Washington: the tax from the applicable table is multiplied by a fraction whose numerator is the value of property located in Washington and whose denominator is the decedent’s gross estate, with both numerator and denominator excluding property qualifying for a deduction under RCW 83.100.046. It declares the estate tax a stand-alone state tax that incorporates only Internal Revenue Code provisions as amended or renumbered as of January 1, 2005 to the extent they do not conflict with this chapter, and states the tax is independent of any federal estate tax and unaffected by termination of the federal estate tax. The text references RCW 83.100.046 for deduction treatment and 2025 c 421 s 202 but does not include the wording of that deduction provision, the prior statutory language that changed rates on or after May 20, 2025, or any implementing agency instructions or filing procedures. The relationship between the bill title’s reference to May 20, 2025 and the body’s July 1, 2026 date is unclear from the provided material.

If enacted, the law will make Washington estates face the lower tax schedule that applied before May 20, 2025 for deaths occurring before July 1, 2025 and again for deaths on or after July 1, 2026, but it inserts a one-year window (July 1, 2025 to June 30, 2026) when much higher estate tax rates apply. Residents’ intangible assets (like bank accounts, stocks, etc.) are explicitly counted as Washington property for the tax, which increases the chance and size of a state estate tax bill for people who live here. If some assets are outside Washington, the state tax is reduced proportionally by the share of the estate that is in-state, excluding items allowed under RCW 83.100.046. The parties most affected are estates of decedents who die between July 1, 2025 and June 30, 2026, which will likely pay substantially higher taxes, and Washington residents with significant intangible holdings, who will more often be subject to state estate tax. Estates with property outside Washington will see their bills scaled down by the in-state fraction, but the exact scope of deductions and some implementation details (the text of RCW 83.100.046, how the changes are administered, and the prior change referenced around May 20, 2025) are not provided here, leaving some uncertainty about practical application.