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

DHS immigration WA...

Manda Factor

WA AG Nick Brown backs legal challenge to DHS immigration arrest practices

Washington Attorney General Nick Brown has joined a coalition supporting a legal challenge to the DHS's use of warrantless civil immigration arrests.

58 minutes ago

Snoqualmie Pass Closure...

MyNorthwest Staff

Westbound I-90 closing at Snoqualmie Pass for winter preparation

Washington State Department of Transportation (WSDOT) has announced a temporary closure of all westbound lanes of I-90 at Snoqualmie Pass. WSDOT maintenance crews will be out starting at 11 a.m. Wednesday to perform winter maintenance preparations.

1 hour ago

thurston toxic algae...

Lexi Herda, KIRO 7 News

Toxic algae found at four Thurston County lakes

Thurston County is warning the public to stay out of four of its lakes because of a toxic algae bloom.

2 hours ago

seattle police bodycam bite of seattle shooting...

MyNorthwest Staff

Teen suspect in Bite of Seattle shooting released to home detention

The 15-year-old suspect in the Bite of Seattle shooting was ordered released to electronic home detention Wednesday.

2 hours ago

Seattle taco burglary...

MyNorthwest Staff

Seattle taqueria ‘completely cleaned out’ after three consecutive nights of burglaries

A Columbia City taqueria, Taco City, has been burglarized three nights in a row and "completely cleaned out" this week.

3 hours ago

burien gun drugs arrest...

MyNorthwest Staff

Driver clocked at 70 mph in Burien leads police to drugs, guns and two arrests

A traffic stop for speeding in Burien netted two arrests, the seizure of various drugs, and the recovery of two firearms on Tuesday morning.

4 hours ago

Seattle income tax case heads to Washington State Supreme Court