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Two years after Seattle lawmakers repealed a controversial head tax, a lawsuit related to how that process played out behind closed doors has finally been settled for $35,000.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

Hood Canal Bridge...

Chris Sullivan

Stuck after a Hood Canal Bridge opening? New traffic signal aims to help

A new traffic signal near the Hood Canal Bridge will create gaps in post-opening gridlock so trapped residents can get out of their neighborhoods.

30 minutes ago

watkins murders...

James Lynch

Cold case from the shadows: The brutal 1995 murders of a young mother and daughter

In November 1995, a mother and her young daughter were brutally killed in a crime that still haunts a community more than three decades later.

30 minutes ago

2 brida the pig...

Jake Skorheim and Spike O'Neill Show

‘I think my landlord and my neighbor are hiding her’: Vashon Island woman says 350-pound pig was stolen over political dispute

Julia Carlson's 350-pound pig Brida was stolen from her Vashon Island property on the busiest weekend of the year.

11 hours ago

mariners home run ball...

Frank Lenzi

Mariners fan takes home run ball to face, but gets signed apology from Julio and message from favorite player Muñoz

Longtime Seattle Mariners fan Nikki Jones went to T-Mobile Park Tuesday night hoping to score an Andrés Muñoz bobblehead.

11 hours ago

kent syria join isis...

Jason Sutich

21-year-old Kent man admits plot to join ISIS in Syria, faces up to 20 years

A 21-year-old Kent resident pleaded guilty to conspiring to provide material in support of a foreign terrorist organization after he planned to join ISIS.

12 hours ago

seattle bridges...

Paola Tristan Arruda, KIRO 7 News

How does SDOT cool down Seattle’s bridges during extreme heat?

Extreme heat can cause damage to our roads and bridges.

13 hours ago

Seattle settles lawsuit over 2018 head tax repeal controversy