SB 5797 Washington Senate · 2025-2026 Regular Session

Enacting a tax on stocks, bonds, and other financial intangible assets for the benefit of public schools.

SB 5797 enacts a new tax on certain financial intangible assets, such as stocks and bonds, in Washington State. The bill levies a tax of $0.34 for every $1,000 of true and fair value of these assets. It primarily affects individuals and artificial persons with over $50,000,000 in taxable financial intangible assets, while exempting retirement savings, college savings, and ownership interests in private companies. Revenues generated from this tax are dedicated to the education legacy trust account to support public schools, early learning, child care, and higher education.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Jan 2026

Senate Passage

Apr 2025

House Passage

Governor

Introduced Jan 12, 2026 Last action Jan 12, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Substitute Bill → Engrossed Bill · 3 edits · Apr 27, 2025

MINOR

The bill was advanced from its substitute version to an engrossed version, incorporating significant policy changes to the proposed wealth tax. The most critical change is the tax rate increase from $0.34 to $5 for every $1,000 of taxable financial assets, substantially raising the revenue generated for public schools. The effective tax year was also adjusted to apply to taxes due in 2027 instead of 2028.

Scope change

The bill's scope regarding the tax rate and revenue generation has expanded significantly, while the definition of the tax year was adjusted to align with the new rate.

FISCAL

The wealth tax rate was increased from $0.34 to $5 per $1,000 of taxable financial intangible assets, drastically increasing the potential revenue for public schools.

TIMELINE

The tax year for which the tax is due was changed from 2028 to 2027, shifting the effective implementation timeline forward by one year.

TECHNICAL

The bill title was updated from 'Substitute Senate Bill' to 'Engrossed Senate Bill', and the list of sponsoring legislators was reformatted to include all names directly.

Floor votes · Senate Apr 27, 2025

How they voted

28–21

Passed · 1 other

Total votes 50

Apr 27, 2025

D Democratic30

27 Yea 3 Nay

90% Yea

R Republican20

1 Yea 18 Nay 1

90% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jan 12, 2026

Committee

Rules Committee relieved of further consideration. On motion, referred to Ways & Means.

upper

Jan 12, 2026

Introduced

By resolution, reintroduced and retained in present status.

upper

Apr 27, 2025

Upper · Passed

Floor amendment(s) adopted.

upper

Apr 18, 2025

Upper · Passed

Minority; without recommendation.

upper

Apr 18, 2025

Upper · Passed

Minority; do not pass.

upper

Apr 18, 2025

Upper · Passed

Executive action taken in the Senate Committee on Ways & Means at 9:00 AM.

upper

Mar 31, 2025

Upper · Passed

Public hearing in the Senate Committee on Ways & Means at 4:00 PM.

upper

1 primary · 14 co-sponsors