WA HB1728

Expands Washington's estate tax deduction for farm property to include "qualified nonfamilial heirs" — farm employees who materially participated in farm operations and inherit property from the decedent

Defines "employee of a farm" as a person hired by the decedent or family member who receives wages, salary, or benefits and was actively employed at the time of death (excludes self-employed persons, independent contractors, and tenant farmers)

Requires nonfamilial heirs to meet material participation standards similar to those used under federal tax code (26 U.S.C. Sec. 1402(a)(1)) to qualify for the deduction

Amends RCW 83.100.046 to allow tangible personal property used by qualified nonfamilial heirs for farming purposes to be deducted from the Washington taxable estate

Takes effect August 1, 2025, and applies to decedents dying on or after that date