State estate-tax proposal being drafted
An estate-tax proposal is being floated in Olympia. The proposal – not yet finalized — is in addition to the capital-gains and compensation tax proposals described in this article from the previous AGC WORKS newsletter.
Rep. Tina Orwall (D-33) is currently drafting the estate-tax bill which she plans on introducing when the Legislature convenes next week. The bill creates additional tiers and increases the top tier rate via the estate tax to generate additional revenue. Rep. Orwall’s proposal would direct at least some of the raised revenue to a foreclosure-prevention program.
According to the current draft of the measure, after the federal portion of the estate tax is paid, the state portion kicks in.
- The bottom tier is raised from 10% to 14% and
- the highest tier goes from 20% to 40% (the 40% tier is triggered around the billion-dollar mark)
- The bottom tier is bumped up from around $2.5M to $3.5M after the fed portion is paid.
The bill has a formula for charitable deductions made by the estate.
- $100M charitable donation receives 25% deduction
- In excess of $100M receives 75% deduction
AGC has not taken a position on the proposal as it has not yet been formally introduced, but AGC has opposed previous estate-tax bills.
For more information, contact AGC Chief Lobbyist Jerry VanderWood, 360.352.5000.