(Matt Pitman, KIRO Radio)
A King County decide struck down a lawsuit submitted by the Seattle Chamber of Commerce, which experienced sought to overturn Seattle’s big enterprise “Jump Start” tax.
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The tax was passed town councilmembers in July of 2020, levying a tax on firms with payrolls more than $7 million. Underneath the measure, qualifying corporations are taxed .7% for each individual employee making more than $150,000, and 1.4% for staff earning above $500,000.
The Chamber of Commerce alleged in its lawsuit that the tax violated the Washington condition Constitution, and that it conflicted with the ideal of state citizens to get paid a dwelling wage.
In follow, the JumpStart tax is levied right on qualifying firms, and does not come out of personnel salaries. That proved to be important to the judge’s ruling, who pointed out in her ruling that towns have broad authority to tax business entities.
Seattle town leaders praised the ruling shortly soon after it was issued.
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“I am happy to have this frivolous problem behind us, given that the actuality is the opponents say they want the similar investments JumpStart will fund: extra economical housing, pathways out of homelessness, and economic resilience for our area economy,” Councilmember Teresa Mosqueda mentioned in a published launch. “We now have the assurance that this progressive profits stream is coming as we search for to react to the crises worsened by COVID-19.”
There would have been extensive-ranging implications experienced the tax been overturned in court docket, supplied that funds from the evaluate have been greatly incorporated into Seattle’s 2021 funds to account for COVID-19 aid income and homeless reaction endeavours.
In the in close proximity to expression, it borrows from the city’s crisis and typical cash, and then will pay out that back with desire when the tax begins to obtain cash in 2022.
