MYNORTHWEST NEWS

Seattle income tax case heads to Washington State Supreme Court

Nov 1, 2019, 1:05 PM | Updated: Nov 3, 2019, 1:29 pm

Income tax, Legislature...

The income tax continues to spark debate statewide.(Chris Potter, Flickr)

Seattle’s income tax saga will soon head to the Washington State Supreme Court. This comes after an appeals court refused to reconsider a July ruling, when it previously stated that a uniform tax across all earners was constitutional.

Court rules Seattle can impose an income tax in stunning decision

The decision came in on Wednesday, succinctly rejecting an appeal that asked the court to take a second look at its July ruling.

“The panel has determined that the motion for reconsideration and the request for oral argument be denied,” the ruling reads.

This leaves the door open for a showdown in Washington’s Supreme Court, where a few different things will need to be decided:

  • Whether the income tax on high-earners Seattle approved in 2018 can be implemented at all
  • Whether the appeal’s court decision allowing a uniform tax across all earners is Constitutional
  • Whether income qualifies as property

The City of Seattle is hoping to see a 90-year-old legal precedent that labels income as property overturned, something that’s been a major roadblock toward levying an income tax anywhere in Washington state.

Meanwhile, Seattle City Councilmember Lisa Herbold is planning ahead, with a budget proposal for implementing the tax should the city win its case in the state Supreme Court.

Seattle City Council knew income tax was illegal before passing tax

Should the proposal get struck down, Councilmember Sally Bagshaw has a separate, alternative idea:

“Re-examining the possibility of an unearned income tax, which we know is constitutional if it starts at $0,” she proposed. “We consider this far more progressive.”

Essentially, Bagshaw’s proposal would levy a tax against things like stock dividends, interest, and capital gains.

MyNorthwest News

police chief barnes...

KIRO Newsradio staff

‘Let’s call it what it is’: Seattle public safety chair demands mayor explain why she removed police chief

City Councilmember Bob Kettle said the mayor still hasn't explained why she forced then-Police Chief Shon Barnes out.

8 minutes ago

walmart allegations settlement seattle...

Jason Sutich

‘Every dollar matters’: Walmart to pay nearly $120K to Seattle gig workers after settling alleged labor violations

Walmart will pay nearly $120,000 to 413 affected workers after the company settled allegations with the Office of Labor Standards.

26 minutes ago

everett missing indigenous person alert...

MyNorthwest Staff

Missing Indigenous Person Alert issued for 19-year-old Lakota Johnson last seen in Everett

A Missing Indigenous Person Alert has been issued by the Washington State Patrol for 19-year-old Lakota Johnson.

2 hours ago

apple cup sound transit...

KIRO 7 News Staff

Apple Cup fans stuck after Sound Transit light rail malfunctions

Sound Transit is investigating what caused a light rail train to stall near Seattle’s University District after Sunday’s Apple Cup rivalry football game.

3 hours ago

thurston county dui burn social security...

Jason Sutich

Woman allegedly burning Social Security cards tased, arrested for DUI after pursuit in Thurston County

A woman allegedly burning Social Security cards and other identity documents was tased and arrested Saturday morning near the Nisqually Handicap Fishing area.

4 hours ago

seattle gas works park toxic...

BRANDON THOMPSON, KIRO 7

Seattle’s Gas Works Park sits atop a toxic legacy, cleanup is still years away

This summer at Gas Works Park, a new sound brought a fresh conversation to a decades-old problem: contamination from the land’s past life as a coal-oil plant.

5 hours ago

Seattle income tax case heads to Washington State Supreme Court