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Bill

HB 2046

Creating fairness in Washington's tax by imposing a tax on select financial intangible assets.

2025-2026 Regular Session Introduced by April Berg and 20 co-sponsors

Washington bill proposes new tax on financial intangible assets to diversify state revenue and shift burden toward wealth holders, facing legal and economic feasibility questions.

Public hearing in the House Committee on Finance at 8:00 AM.
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Bill Summary · HB 2046

Legislative bill overview

HB 2046 proposes a new tax on select financial intangible assets in Washington State. The bill aims to broaden the state's tax base by targeting financial instruments and investments that currently fall outside standard taxation frameworks.

Why is this important

Washington has no state income tax and relies heavily on sales taxes, which disproportionately affect lower-income residents. This bill represents an attempt to diversify revenue sources and potentially shift the tax burden toward wealth holders. The outcome could affect state funding for education, healthcare, and infrastructure while reshaping Washington's tax competitiveness.

Potential points of contention

  • Definition and scope uncertainty: "Select financial intangible assets" is broad language that could capture stocks, bonds, derivatives, or other investments differently than intended, creating compliance confusion
  • Constitutionality concerns: Washington courts have previously rejected similar wealth/asset taxes; legal challenges are likely and could delay or block implementation
  • Economic competitiveness: High-net-worth individuals and financial firms may relocate to neighboring states without income taxes, potentially reducing the tax base rather than expanding it
  • Implementation complexity: Assessing and collecting taxes on intangible assets is administratively challenging compared to traditional sales or income taxes

Compiled from official sources — confirm details with the bill’s official record.

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