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

Fatal motorcycle crash closes I-5 South in Mount Vernon. (Courtesy WSDOT)...

Frank Lenzi

Fatal motorcycle crash blocks southbound I-5 in Burlington

The southbound lanes of Interstate 5 are blocked due to a fatal motorcycle crash in Mount Vernon.

4 minutes ago

Some Sound Transit lines cancelled this morning,...

Bill Kaczaraba

All Sound Transit N and S lines cancelled for morning commute

Sound Transit has announced that all of its Sounder S and N Line services will be cancelled for the morning commute today. The cancellation goes into effect at 4:36 a.m. and ends at 12:12 p.m. today for the S Line. For the N Line, the cancellation goes into effect from 6:15 a.m. to 9:44 a.m.

9 minutes ago

Dog...

Frank Lenzi

Meet Ryan: Seattle Police comfort dog supporting victims of abuse

The Seattle Police Department is giving a shout-out to one of its dogs: "Ryan" is a 4 ½-year-old yellow English Labrador Retriever.

37 minutes ago

Handcuffs...

James Lynch

Renton man charged for shooting into neighbor’s home and at police

A Renton man, 34-year-old Eder Rubio-Ordonez was arrested Saturday afternoon.

12 hours ago

ranked choice voting washington...

Sam Campbell

WA Secretary of State warns Trump admin. may undermine election security

Our Secretary of State said the Trump administration could be undermining election security here in Washington.

13 hours ago

U.S. Immigration and Customs Enforcement arrested Jose Marin-Lozano, 47, a citizen of El Salvador w...

Jason Rantz

ICE Seattle arrests Salvadoran fugitive wanted for murder in El Salvador

ICE Seattle arrested a Salvadoran fugitive wanted in his home country for aggravated homicide, the agency announced.

14 hours ago

Olympia could nix Seattle income tax before it gets started