Oligarch Act of 2025

Relief for specific asset holders: Tangible personal property valued at $50,000 or less is excluded from the tax, provided it is not used in a trade or business, a collectible, or a specific type of high-value asset like a boat or aircraft (Section 2902(b)).

Financial flexibility for those in hardship: The Secretary has the authority to extend the time for payment of the tax for up to 5 years if a taxpayer has severe liquidity constraints or if immediate payment would cause undue hardship on an ongoing enterprise (Section 2905(c)).

Tax burden on trusts: Trusts are subject to a flat tax rate of 8 percent on the net value of all taxable assets that exceed the threshold amount (Section 2901(b)(2)).

Increased scrutiny and audit risk: The Secretary is required to annually audit at least 30 percent of taxpayers required to pay this tax (Section 2905).

Penalties for valuation errors: Taxpayers may face increased penalties if there is a substantial wealth tax valuation understatement, where the reported value of property is 65 percent or less of the correct amount (Section 2905(d)).

New reporting obligations: The Secretary may impose various reporting obligations on financial institutions, business entities, or other persons to help administer the tax (Section 2904(c)).