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Key Findings

1. Both Senate Bill 6462 and House Bill 2479 would prohibit the imposition of a local income tax.
2. Local government officials have long understood that the Legislature has not granted them the authority to impose an income tax.
3. As a result of the City of Seattle’s effort in 2017 to impose a local income tax, the Court of Appeals in July 2019 shockingly ruled that the 1984 law prohibiting a local income tax is unconstitutional.
4. Washington voters have already rejected 10 straight income tax proposals and a recent poll shows 72 percent are opposed to a local income tax.
5. In passing either SB 6462 or HB 2479, lawmakers will be honoring the clear message from voters by simply reinstating the popular local income tax ban as it has existed since 1984.

Introduction

Two bills have been proposed that would affirm the state’s longstanding prohibition on imposing a local income tax. Both Senate Bill 6462 and House Bill 2479 would prohibit the imposition of a local income tax.1 House Bill 2479 is sponsored by 18 Republican Representatives, while Senate Bill 6462 is sponsored by 15 Republican and four Democratic Senators. The bills are in response to the disturbing July 2019 decision by the state Court of Appeals saying a 1984 law that explicitly prohibits a local income tax, and which has been in force for 36 years, is unconstitutional and violates single subject restrictions.2 That ruling is awaiting possible review by the state Supreme Court. In the meantime, several cities have already acted to pass local income tax bans responding to the surprise court ruling.

 Continue reading the full Legislative Memo here.