Seattle City Attorney Pete Holmes petitioned the Washington State Supreme Court today, asking that the Justices hear arguments related to the City of Seattle’s proposed High Earner Income Tax. In 2017, the City Council adopted a 2.25% tax on personal income earned over $250,000 (or $500,000 for joint filers) intended to “allow the City to lower the burden associated with property taxes and other regressive taxes, replace federal funding potentially lost through federal budget cuts, enhance public services such as housing, education, and transit, and/or create green jobs while meeting the City’s carbon reduction goals.”
Seattle City Attorney Pete Holmes said, “I’m asking the Court to correct erroneous and antiquated case law, which itself is rooted in a case that has since been overturned by the US Supreme Court as a ‘relic of a bygone era.’ The Court of Appeals already ruled Seattle has a right to impose an income tax, but I’m hoping we make our case that would allow for a progressive income tax.
“Our team is working to give our elected policymakers the tools they need to meet the growing needs of our city. That means finding new progressive financing tools which more fairly share the burden of providing needed government services.”
“It’s time that the Court revisit the question: is an income tax a property tax? I’m hopeful the Court will choose to hear our case.”
The Justices are not bound by any deadline by which they must decide.