AN ACT Relating to undoing the recent changes to the estate tax;
Summary
SB 6347 revises Washington’s estate tax by undoing certain prior changes to the exclusion amount and tax rate structure. The bill amends the estate tax chapter to redefine the applicable exclusion amount for decedents dying in specified date ranges, ties future annual adjustments to the Seattle-area consumer price index, and updates related definitions used in calculating the tax. It also restates how the Washington taxable estate is determined and clarifies that the state estate tax is a standalone tax independent of the federal estate tax.
The bill changes the tax tables and rate structure for estates subject to Washington estate tax, including separate treatment for different death-date periods and a proration rule for property located outside Washington. It preserves the existing framework for deductions and exclusions while adjusting the thresholds and formulas used to compute liability. The act takes effect June 11, 2026.
Impact
The bill affects Washington’s estate tax statutes, primarily RCW 83.100.020 and related provisions in the estate tax chapter. It changes the applicable exclusion amount, the method for annual inflation adjustments, the definition of Washington taxable estate, and the tax computation tables/rates for estates of decedents dying in different periods. It also reinforces that the Washington estate tax is independent of federal estate tax law and applies to transfers of property located in Washington, with special sourcing rules for intangible property owned by residents.
Sentiment
The bill appears to have received generally favorable consideration, passing both chambers with clear majorities and strong committee support. The Senate Ways & Means Committee recommended do pass, the House Finance Committee recommended do pass with amendments, and final passage votes in both chambers were comfortably in the affirmative. The amendment in the House suggests some members sought to refine the bill, but the overall voting pattern indicates broad support for the measure.
Contention
The main point of contention is likely the policy choice to revise estate tax thresholds and rates, which can affect high-value estates, heirs, and estate planners. Supporters appear to favor restoring or adjusting the tax structure, while opponents may have been concerned about increased tax liability, the treatment of estates near the exclusion threshold, and the impact on family-owned assets or out-of-state property. The House’s amended passage and the non-unanimous votes in both chambers suggest some disagreement over the scope and fairness of the tax changes, even though the bill ultimately advanced with bipartisan support.
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