BILL REQ. #:  H-5126.2 



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HOUSE BILL 3184
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State of Washington61st Legislature2010 Regular Session

By Representatives Chase, Williams, Hunt, Dickerson, Flannigan, and Moeller

  



     AN ACT Relating to increasing estate taxes; amending RCW 83.100.040 and 83.100.230; creating a new section; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 83.100.040 and 2005 c 516 s 3 are each amended to read as follows:
     (1) A tax in an amount computed as provided in this section is imposed on every transfer of property located in Washington. For the purposes of this section, any intangible property owned by a resident is located in Washington.
     (2)(a) Except as provided in (b) of this subsection, the amount of tax is the amount provided in the following table:



If Washington Taxable

The amount of Tax Equals
Of Washington Taxable Estate Value Greater than
Estate is at leastBut Less ThanInitial Tax AmountPlus Tax Rate %
$0$1,000,000$0((10.00)) 20.00%$0
$1,000,000$2,000,000(($100,000)) $200,000((14.00)) 28.00%$1,000,000
$2,000,000$3,000,000(($240,000)) $480,000((15.00)) 30.00%$2,000,000
$3,000,000$4,000,000(($390,000)) $780,000((16.00)) 32.00%$3,000,000
$4,000,000$6,000,000(($550,000)) $1,100,000((17.00)) 34.00%$4,000,000
$6,000,000$7,000,000(($890,000)) $1,780,000((18.00)) 36.00%$6,000,000
$7,000,000$9,000,000(($1,070,000)) $2,140,000((18.50)) 37.00%$7,000,000
Above $9,000,000(($1,440,000)) $2,880,000((19.00)) 38.00%Above $9,000,000


     (b) If any property in the decedent's estate is located outside of Washington, the amount of tax is the amount determined in (a) of this subsection multiplied by a fraction. The numerator of the fraction is the value of the property located in Washington. The denominator of the fraction is the value of the decedent's gross estate. Property qualifying for a deduction under RCW 83.100.046 ((shall be)) is excluded from the numerator and denominator of the fraction.
     (3) The tax imposed under this section is a stand-alone estate tax that incorporates only those provisions of the internal revenue code as amended or renumbered as of January 1, 2005, that do not conflict with the provisions of this chapter. The tax imposed under this chapter is independent of any federal estate tax obligation and is not affected by termination of the federal estate tax.

Sec. 2   RCW 83.100.230 and 2008 c 329 s 924 are each amended to read as follows:
     (1) The education legacy trust account is created in the state treasury. Money in the account may be spent only after appropriation.
     (2) Expenditures from the account ((may)) must be used only ((for deposit into the student achievement fund and for)) as follows:
     (a) Fifty percent of the money deposited must be used for expanding access to higher education through funding for new enrollments and financial aid, and other educational improvement efforts; and
     (b) Fifty percent of the money deposited must be used for grants to Washington high school graduates for either the graduate's:
     (i) First year of tuition at a Washington community college; or
     (ii) First term of tuition at Eastern Washington University, Central Washington University, Western Washington University, The Evergreen State College, University of Washington, or Washington State University.
     (c) During the 2007-2009 fiscal biennium, moneys in the account may also be transferred into the state general fund.

NEW SECTION.  Sec. 3   This act applies prospectively only and only applies to estates of decedents dying on or after April 1, 2010.

NEW SECTION.  Sec. 4   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect April 1, 2010.

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