Seattle Income Tax: City Council Taking First Step

SEATTLE, WA - The Seattle City Council on Monday took a small step toward enacting a city income tax. The Council unanimously passed a resolution expressing intent to pursue an tax on high earners, with more concrete action scheduled for July. The resolution is being sponsored by Council members Lisa Herbold and Bruce Harrell.

The City Council hasn't established its criteria for the tax - Monday's resolution would incite them to do that. But, a group called Trump-Proof Seattle, which has been pushing for a city income tax, has suggested a 1.5 percent income tax on earnings over $250,000 per year.

The resolution passed on Monday compels the Council to create a draft resolution on an income tax ordinance by the end of May. The resolution also calls for passage of an income tax ordinance by July 10.

But, high-income Seattle residents shouldn't expect to pay an income tax anytime soon.

At a forum for mayoral candidates last month, incumbent Mayor Ed Murray called for the City Council to pass an income tax on high earners this year. Murray called for such quick action because any income tax will almost surely be challenged in court. Previous income tax initiatives have either been voted down or struck down by the state Supreme Court (as was the case with the first income tax ballot initiative in 1932). The sooner the Council passes an ordinance, Murray said, the sooner the ordinance can proceed through a court challenge.

The income tax would raise about $125 million, according to Trump-Proof Seattle. The campaign is so named because it would prevent the Trump administration from punishing Seattle by removing federal grants. Although it was put on hold by a federal court judge last week, the Trump administration has threatened to take away federal law enforcement grants from so-called "sanctuary cities."

You can read Herbold's full statement on the Seattle income tax proposal here.

Image via City of Seattle