Washington State Millionaire Tax Demands Tax Advisers' Attention

Tax attorney Christopher Brown wrote a Bloomberg Tax article about Washington state's new 9.9 percent "millionaire tax" and the planning issues it raises for high-net-worth individuals and pass-through entities if it takes effect in 2028. He recommends that advisers begin assessing how the tax could affect residency decisions, income sourcing and distribution structures, particularly for nonresidents and business owners with Washington connections. The article also highlights the need to review operating agreements, loan covenants and other governing documents now to address potential state tax liabilities and related cash flow concerns.

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