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.

Please follow our Community Guidelines

MyNorthwest News

bite of seattle ferguson text...

Frank Lenzi

Bite of Seattle shooting: Ferguson texts reveal Jayapal’s concerns about news conference

U.S. Rep. Pramila Jayapal questioned whether she and Gov. Bob Ferguson should attend a news conference after the July 26 Bite of Seattle shooting, according to text messages released by Ferguson’s office. The shooting left three people dead and four others wounded.

4 hours ago

seattle man dies in custody...

Luke Duecy

$30 million claim filed against Seattle over fatal police shooting of man in alleged mental health crisis

Attorneys for the family of a Seattle man fatally shot by police have filed a $30 million claim against the city, alleging officers used excessive force.

9 hours ago

washington casinos close...

MyNorthwest Staff

8 Washington casinos set to close, putting 850 people out of work

Maverick Washington LLC is closing eight casinos across Washington, putting 850 people out of work on Nov. 30.

10 hours ago

floatplane...

MyNorthwest Staff

Floatplane makes emergency landing on lake near Marysville

A floatplane made an emergency landing on a lake near Marysville Wednesday afternoon.

10 hours ago

downtown Seattle job losses...

Frank Lenzi

Downtown Seattle accounts for roughly 70% of city’s job losses

Seattle lost more than 18,000 jobs from 2024 to 2025, with downtown accounting for roughly 70% of those losses.

10 hours ago

Ireland...

Jason Sutich

‘No way to escape’: Ireland man sentenced for disrupting Dublin-to-Seattle flight

A Northern Ireland resident who disrupted an Aer Lingus flight from Dublin to Seattle on June 19 was sentenced Wednesday.

12 hours ago

Seattle income tax case heads to Washington State Supreme Court