Washington 2025-2026 Regular Session

Washington Senate Bill SB5797

Introduced
3/21/25  
Refer
3/21/25  
Report Pass
4/18/25  
Engrossed
4/27/25  

Caption

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

Impact

The passage of SB5797 would result in significant changes to how public schools are financed, shifting some reliance onto financial transactions and investments. Advocates argue that this would provide a much-needed boost to educational funding during a time when many schools face budget constraints. However, this could also introduce new complexities and administrative burdens related to the assessment and collection of these taxes, potentially impacting the financial markets and individual investors.

Summary

SB5797 proposes the taxation of stocks, bonds, and other financial intangible assets with the revenue generated specifically allocated for the benefit of public schools. The intent of the bill is to provide a stable source of funding for education, addressing ongoing concerns about the adequacy of school funding across the state. By implementing this measure, the bill aims to create a financial mechanism that can support educational improvements, including infrastructure, teacher salaries, and student resources.

Sentiment

Sentiment surrounding SB5797 has been largely supportive among proponents of educational funding reform, who see the bill as a proactive approach to addressing funding disparities. In contrast, there are concerns among certain legislators and financial experts regarding the implications of introducing a financial tax, with some viewing it as a potential deterrent for investment. The dialogue has led to a nuanced debate over the merits and drawbacks of utilizing financial assets as a tax base for public education.

Contention

Notable points of contention regarding SB5797 include concerns raised about the potential impact this tax could have on investment behaviors, as critics argue it may dissuade investment in the state or lead to capital flight to jurisdictions with more favorable tax conditions. Additionally, opponents could argue that the tax could disproportionately affect certain investors, particularly those from lower-income backgrounds who may hold financial assets less diversely. The discussion has also encompassed broader philosophical debates about the role of taxation in funding public services, particularly education.

Companion Bills

No companion bills found.

Previously Filed As

WA HB1473

Investing in Washington families and creating a more fair tax system by enacting a narrowly tailored property tax on extreme wealth derived from the ownership of stocks, bonds, and other financial intangible property.

WA SB5486

Investing in Washington families and creating a more fair tax system by enacting a narrowly tailored property tax on extreme wealth derived from the ownership of stocks, bonds, and other financial intangible property.

WA HB2481

Waiving health benefit premiums in the public employees' benefits board.

WA SB6062

Concerning the authority of the department of natural resources to lease trust assets for the benefit of trust beneficiaries and the state.

WA HB1737

Enacting the reconciliation act.

WA HB1246

Concerning eligibility for health benefits from the school employees' benefits board for school employees.

WA SB5517

Enacting recommendations from the joint legislative task force on water resource mitigation.

WA SB5275

Expanding access to benefits provided by the school employees' benefits board.

WA HB2299

Concerning the authority of the department of natural resources to lease trust assets for the benefit of trust beneficiaries and the state.

WA HB1715

Enacting comprehensive protections for victims of domestic violence and other violence involving family members or intimate partners.

Similar Bills

No similar bills found.