S-3236.2
SUBSTITUTE SENATE BILL 5797
State of Washington
69th Legislature
2025 Regular Session
By Senate Ways & Means (originally sponsored by Senators Frame, Dhingra, Alvarado, Bateman, Hasegawa, Lovelett, Nobles, Pedersen, Ramos, Riccelli, Stanford, Trudeau, Valdez, Wellman, and C. Wilson)
READ FIRST TIME 04/19/25.
AN ACT Relating to enacting a wealth tax on stocks, bonds, and other financial intangible assets for the benefit of public schools; amending RCW 82.32.160 , 43.135.034 , and 82.32.655 ; adding a new Title to the Revised Code of Washington to be codified as Title 84A RCW; creating new sections; and prescribing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. INTENT. (1) The legislature finds that it is the state's paramount duty to amply provide every child in the state with an education, including children who qualify for special education services, creating the opportunity for each child to succeed in school and achieve success in life. The legislature further recognizes that not only our Constitution, but our conscience, call on us to ensure that all Washington children are prepared for a successful future through access to a high quality public education. Historical education reform efforts have been ongoing since 2009 with an emphasis on creating a fully funded system that is student-focused, supports all students, and fosters diversity, equity, and a welcoming classroom in every school. The legislature recognizes we are not done. The legislature acknowledges the most important priority and challenge we still face is fully funding all of our basic education obligations, including the costs associated with serving the needs of students with disabilities and the growing daily operating costs of districts. Meeting this challenge is paramount. The legislature also finds that cuts to essential services, including health care and other programs that protect the safety and well-being of the public, as well as social services protecting our most vulnerable residents, often impact programs that provide holistic services for children and their families and ultimately undermine our students' ability to arrive at the classroom ready to learn. It is the legislature's intent to meet our constitutional obligation and follow through on the promises we have made to Washington's 1,100,000 school children by raising new progressive revenue for our public schools, ensuring our students have the resources and tools necessary for success.
(2) Thus, the legislature intends to diversify our state's revenue sources to include taxing certain financial intangible assets that have historically been fully exempted from the tax code; assets that are often the key drivers of wealth inequality in our state. The legislature intends to levy a wealth tax of $0.34 on every $1,000 of the true and fair value of certain financial intangible assets, such as stocks and bonds, while exempting retirement savings, college savings, and ownership interests in private companies and partnerships. Additionally, to continue to make progress toward the state having a fair and balanced tax system that works for all residents, the legislature intends to exempt up to $50,000,000 in true and fair value of taxable financial intangible assets. Revenues generated from this tax will be dedicated to the education legacy trust account for the support of public schools, early learning, child care, and higher education.