MYNORTHWEST NEWS

Seattle settles lawsuit over 2018 head tax repeal controversy

Oct 20, 2020, 2:26 PM

Head tax Seattle...

People in support of, and against, the head tax crowd into Seattle City Hall in 2018. (Matt Pitman, KIRO Radio)

(Matt Pitman, KIRO Radio)

Two years after Seattle lawmakers repealed a controversial head tax, a lawsuit related to how that process played out behind closed doors has finally been settled for $35,000.

Seattle head tax 101: How the process played out in 2018

The lawsuit was originally filed by activist Arthur West, who alleged that the city violated the state’s open public meetings laws when it negotiated a repeal of the 2018 head tax. West pointed to a series of private text messages and calls between Mayor Jenny Durkan and council members, as part of a successful bid to line up a repeal vote.

In issuing its $35,000 settlement to West, the city effectively admitted no fault or wrongdoing, and avoided what would likely have been a costly trial process.

“A settlement would cost several times less than continuing to litigate,” a spokesman for City Attorney Pete Holmes told The Seattle Times.

In a separate statement issued to the Times, West expressed satisfaction with the end result, saying “the point’s been made,” and that he thinks he “can declare victory on this one without any qualms.”

The 2018 head tax was originally approved by the Seattle City Council in May of 2018, and would have taxed over 500 businesses making more than $20 million annually in gross receipts. It was expected to raise $47 million annually, with a large portion of that money earmarked for affordable housing and homeless response efforts.

Sawant: Amazon tax ‘only thing’ that can rescue Seattle economy

After council members approved the tax unanimously, public pressure and a lengthy negotiation process with the mayor’s office led to a 7-2 vote to repeal, with Kshama Sawant and Teresa Mosqueda operating as the lone votes against the repeal effort.

In the years since, Sawant has continued to push for a tax on big businesses. A proposal to tax corporations with payrolls over $7 million from Mosqueda was eventually approved by the council early in 2020, and will take effect in 2021.

MyNorthwest News

Image: Brightly colored eggs are set on a table on the South Lawn of the White House in Washington,...

Ted Buehner

Expect good Easter weekend weather for egg hunts, chilly evening Mariners games

Both Saturday and Sunday of Easter weekend will feature temperatures warming to around 60 degrees across much of Western Washington.

5 hours ago

Taylor Swift performs onstage during the Taylor Swift | The Eras Tour at Lumen Field on July 22, 20...

Micki Gamez, KIRO Newsradio and Bill Kaczaraba, MyNorthwest

Seattle tourism dollars break records following All-Star Week, Taylor Swift

It was a record-setting year for dollars flowing into Seattle from tourists.

6 hours ago

Image: A bridge in Carnation....

Julia Dallas

Carnation frustrated with Seattle again after 8th false emergency alarm induces widespread panic

Carnation citizens have faced a series of panic-inducing alarms after SPU's system for the Tolt Dam falsely sounded eight times.

8 hours ago

Grocery store shopper...

Bill Kaczaraba

Ways to deal with Seattle grocery store sticker shock

Seattle grocery store sticker shock continues to play havoc on locals, but there are ways to counter high prices.

8 hours ago

belltown hellcat social media...

Frank Sumrall

Infamous ‘Belltown Hellcat’ social media influencer charged with reckless driving

The social media influencer has been accused of driving 107 miles per hour through Belltown in a Dodge Hellcat.

9 hours ago

KIRO Newsradio gracie awards...

MyNorthwest Staff

KIRO Newsradio anchors receive Gracie Awards for outstanding work

Heather Bosch and Lisa Brooks, anchors at KIRO Newsradio, have been honored by the Alliance for Women in Media with prestigious Gracie Awards.

12 hours ago

Seattle settles lawsuit over 2018 head tax repeal controversy