The bill enacts a new state tax called the "financial intangible assets wealth tax," codified as a new chapter in a new Title 84A RCW. It imposes a tax of $5 per $1,000 of the true and fair value of a Washington resident's taxable worldwide financial intangible assets, with the tax effective January 1, 2026 for taxes due in 2027. The text states intent to exempt retirement savings, college savings, ownership interests in private companies and partnerships, and to exempt up to $50,000,000 in true and fair value, and requires all revenues from the tax to be deposited into the education legacy trust account under RCW 83.100.230. The bill creates new procedures and penalties and modifies existing tax administration provisions. Returns and supporting documents must be filed and paid electronically unless the Department of Revenue waives the requirement for good cause; spouses and state-registered domestic partners must generally file jointly (with limited separate-filing and innocent-spouse relief procedures). Payment is due on or before the return due date regardless of filing extensions, and interest and penalties under chapter 82.32 RCW apply. A failure-to-file penalty of 5 percent per month (up to 25 percent) is established with a waiver for certain circumstances. The department generally has a four-year limit to assess additional tax after a return is filed, subject to a statutory exception. The act creates a new valuation-understatement penalty for misstatements of intangible asset value (50 percent of the underpayment for a "gross" misstatement where reported value is 40 percent or less of correct value; 30 percent for a "substantial" understatement where reported value is 65 percent or less), applicable only when the attributable portion for the calendar year exceeds $5,000, and these penalties are in addition to other penalties except as specified. The bill also amends RCW 43.135.034 to broaden the definition of "raises taxes" and limits local taxation of certain intangible property, and amends RCW 82.32.655 to authorize disregard of specified tax-avoidance transactions and denial of associated tax benefits; it authorizes the Department of Revenue to adopt implementing rules and includes petition and appeal timelines (for example, petitions to contest assessments are generally due within 30 days, and petitions for spouse relief must be filed within two years of a deficiency notice). Important details are missing from the extracted text and are not inferred: the full operational rules for the stated exemptions (including precise definitions, thresholds, and mechanics), the complete filing section that was cut off, and any other implementation, enforcement, or penalty provisions referenced only in the bill header. The extracted material does define many terms (for example, what counts as financial intangible assets, domicile, control, and related concepts) and establishes that sections 1–8 and 10–12 will be codified in Title 84A RCW under the short title "financial intangible assets wealth tax act," but the provided excerpts do not contain the entire statutory language implementing all exemptions, calculations, or administrative procedures.

If enacted, Washington would create a new annual tax on financial intangible assets owned by residents at $5 per $1,000 of value (about 0.5%), effective for holdings measured December 31, 2026 with taxes due in 2027, and all revenues would go into the state’s education legacy trust account to fund K–12, early learning, child care, and higher education. People most affected will be high‑net‑worth residents, owners of substantial publicly traded securities, mutual funds, cash equivalents (including cryptocurrency), and owners treated as grantors of trusts; they will face new tax bills, routine year‑end valuations, mandatory electronic filing and payment, and added compliance costs. Spouses and registered domestic partners will generally have to file jointly and share liability with limited avenues to obtain relief, transfers between partners near year‑end face presumptions of tax avoidance, and the department gets broad authority to audit, disregard avoidance transactions, and levy steep penalties for serious valuation understatements (30–50% of the understatement above a $5,000 threshold) in addition to normal penalties and interest. The bill signals exemptions for certain retirement and college savings accounts, private company interests, and an up-to-$50 million exemption, but the extracted text does not provide the precise rules for applying those exemptions or other operational details, leaving some implementation questions unresolved.