SEATTLE–In a 7-0 vote, the city council of the state’s 10^th largest city unanimously passed a law prohibiting a local income tax. Spokane Valley's approval of this WPC recommendation comes just weeks after voters in neighboring Spokane overwhelmingly passed Proposition 2 – another WPC recommendation which banned an income tax in the Lilac City – with 72% of the vote. That proposal, put forward by the group Better Spokane, was approved in all 142 city precincts.

"Spokane Valley chose to maintain their competitive advantage," said Chris Cargill, WPC's Eastern Washington Director.  "With Spokane's earlier vote, these two cities are sending a strong message to lawmakers that income taxes are not welcome in this state, and I expect those messages will only get louder."

Washington cities are taking these precautionary anti-income tax measures due to efforts in state court and the Legislature that threaten to make income taxes a reality in Washington. For example, Seattle’s City Council tried – and failed – to adopt an income tax. While Seattle lost in court on the grounds its proposal was a graduated income tax, a state Appeals Court decision opened the door for cities to adopt their own income taxes, so long as they are not graduated. 

In a terse 1 page memo on October 30, the Washington Court of Appeals refused to reconsider its shocking decision. This means it is likely the state Supreme Court will consider the case sometime next year. Until then, the state Court of Appeals ruling that allows local governments to adopt income taxes stands.The Association of Washington Cities has filed an amicus brief in the Seattle case claiming that despite the previous statutory restriction against a local income tax, every city in the state already has the authority to impose one.

State lawmakers have also tried to adopt a statewide income tax starting with an income tax on capital gains.  Previously, lawmakers tried to remove restrictions on local income taxes. One such bill (SB 5928, “Eliminating the prohibition on local net income taxes.”) was proposed in 2019 by Sen. Bob Hasegawa (D-Seattle). 

"The relentless income tax efforts - despite voters already rejecting an income tax 10 straight times -  are why cities are taking precautionary measures and sending state legislators a strong message in the process," said WPC's Center for Government Reform Director, Jason Mercier.  "And given the diverse political make-up of Spokane, the consistent citizen backlash against these income tax efforts should remind all lawmakers that Washingtonians don’t want an income tax.”

WPC’s Eastern Washington director Chris Cargill was invited to speak at Tuesday night’s Spokane Valley City Council meeting.  His comments can be viewed here. 

Voters have overwhelmingly rejected every attempt to adopt a statewide income tax -- 10 straight  times in statewide votes.