MYNORTHWEST NEWS

Olympia could nix Seattle income tax before it gets started

May 11, 2017, 6:33 AM | Updated: 10:05 am

income tax...

(Alan Cleaver, Flickr)

While Seattle is trying to adopt an income tax, two state lawmakers are taking steps to prevent it.

“Seattle has decided that they want to see if there is a loophole they can address,” said State Representative Brandon Vick. “If they can tax adjusted gross income, gross income, or capital gains or something of that nature. My bill takes the law and makes it clear. It removes the ambiguity. It says income means gross income, net income, capital gains, adjusted gross income, and it goes as far as to say to the courts to interpret this broadly. If anyone comes up with a cute idea, or vernacular to describe an income tax, that too is an income tax.”

RELATED: Seattle’s income tax proposal explained

Vick is a Republican representing the state’s 18th legislative district. He wants to pass a bill that will shut down any legal attempt that Seattle can take toward an income tax. He’s not alone. Republican State Sen. Phil Fortunato has his own companion bill to Vick’s. They plan to introduce them during the current special session.

“It says, ‘It’s illegal to do illegal things,’” said Fortunato, explaining his bill. “I mean, it’s not that hard — RCW 36.65.030, ‘Tax on net income prohibited. A county, city, or city-county shall not levy a tax on net income.’ That’s it.”

Seattle income tax

The city council passed a resolution expressing support of a local income tax, which is to take the tax proposal to the state’s Supreme Court. At the court level, the city wants to fight it out for the tax. If it can get the court’s approval, it can move forward with a progressive income tax.

Technically, Seattle or any governing body can implement an income tax, but state law says it has to be a uniform 1 percent across all levels. Seattle would rather have different tax rates at different income levels. The Emerald City isn’t alone; Vick notes that Olympia tried similar attempts and the City of Port Townsend is also making a move for an income tax.

But if Vick and Fortunato are successful, then no attempt by any city or county for an income tax will go anywhere in the future.

“My bill is actually pretty simple,” Vick said. “On the books right now is a law that says a city, county or city-county can’t impose an income tax, and what it says is net income. For 30 plus years, that’s been pretty clear. No one has challenged that. But we see now there’s a number of folks who have decided an income tax is the way they want to go for their city.”

It’s not just about firming up an existing law. Vick argues that the lack of an income tax has helped Washington recover from the recession. Fortunato said that rich people are good for the state’s bottom line and he doesn’t want to scare them away.

“A friend of mine is a cabinet maker and his customers are very rich people,” Fortunato said. “He’s not a rich guy, but he’s a great cabinet maker. If rich people didn’t have money to spend, he would be on food stamps. Rich people do things, they spend money, and that money they spend brings revenue to the state.”

“This whole notion of taxing the rich and the rich will pay for it? Well, they’re rich for a reason,” he said. “For one, they’re not stupid. If it takes moving out of the state (to stay rich), they will move out of the state.”

“If they want an income tax, hell, they can vote on it tomorrow … if you make a dollar, you pay 1 percent. If you make a million dollars, you pay 1 percent,” he added.

MyNorthwest News

Danielle and Nick murder-suicide...

Julia Dallas

‘Danielle adored Nick’: Friend remembers mother killed in triple murder-suicide

A heartbreaking murder-suicide in Mercer Island leaves a community mourning the loss of four individuals, including a beloved mother.

2 hours ago

11 students injured school bus crash...

Frank Sumrall

11 students injured after car crashes into school bus in Pierce County

Eleven kids, reportedly from Collins Elementary, were taken to the hospital. No serious injuries have been suffered, as of this reporting.

3 hours ago

measles...

Jillian Raftery, KIRO Newsradio

Measles exposure alert issued after infected family visits King, Snohomish counties

A warning has been issued regarding potential measles exposures in King and Snohomish counties.

4 hours ago

WA Flock cameras bill...

Frank Sumrall

New bill would regulate Flock license plate cameras across WA

The Washington state Legislature is about to start its 2026 session, and among the most important bills and topics to be discussed is the use of Flock cameras across the state.

4 hours ago

portland dhs venezuela shot...

Frank Sumrall

DHS identifies two Venezuelan nationals shot by Border Patrol in Portland

The Department of Homeland Security (DHS) has released the names of the people shot by border patrol agents in Portland Thursday.

5 hours ago

Microsoft job cuts layoffs...

Frank Sumrall

Microsoft denies reports of 10,000+ job cuts after layoff rumors circulate

Microsoft is denying that it planned to lay off more than 10,000 jobs after reports of mass layoffs began circulating.

6 hours ago

Olympia could nix Seattle income tax before it gets started