Washington House Bill HB2725

Washington 2025-2026 Regular Session

• Introduced: 2/4/26
• Refer: 2/4/26

Caption

AN ACT Relating to undoing the recent changes to the estate tax;

Summary

HB2725 would revise Washington’s estate tax statute to undo recent changes and replace the existing estate-tax calculation with a new standalone framework. The bill amends RCW provisions governing the tax on transfers of property at death, including how Washington taxable estate value is determined, how the tax is computed across different date ranges for decedents, and how property located outside Washington is treated in apportioning the tax. It also specifies that intangible property owned by a Washington resident is treated as located in Washington for purposes of the tax. The measure sets out a graduated tax table for estates of decedents dying in different time periods and preserves a formula for reducing tax when a decedent’s property is located partly outside the state. It further clarifies that property qualifying for a deduction under the referenced RCW is excluded from the apportionment fraction. The bill states that the tax is a standalone state estate tax that incorporates only those federal Internal Revenue Code provisions that do not conflict with the chapter, and that it operates independently of any federal estate tax obligation.

Impact

If enacted, HB2725 would alter Washington’s estate-tax law by changing the statutory method for calculating tax on estates and by reaffirming the state’s authority to impose an independent estate tax. It would affect estates of decedents subject to Washington tax, estate planners, beneficiaries, and fiduciaries administering estates with property inside and outside the state. The bill would also affect how intangible assets and out-of-state property are treated for apportionment purposes under the estate tax.

Sentiment

Based on the bill caption and the absence of committee transcripts or recorded votes, the available context suggests the bill was introduced as a corrective or rollback measure aimed at reversing prior estate-tax changes. There is no direct evidence in the provided materials of organized support or opposition, but the title indicates a policy preference for restoring an earlier tax structure. Because no votes or hearing testimony are included, the overall sentiment cannot be measured beyond the bill’s apparent intent.

Contention

The main likely point of contention is the estate tax itself: supporters would view the bill as restoring a prior tax regime or simplifying the law, while opponents would likely object to maintaining or reshaping taxation on estates and transfers at death. Another likely issue is the treatment of intangible property and the apportionment of tax for property outside Washington, which can affect the tax burden on larger or multi-state estates. No specific individuals, groups, or committee arguments are available in the provided record.