A King County Superior Court judge dismissed a lawsuit challenging Councilmember Teresa Mosqueda’s JumpStart Seattle tax with prejudice today. The lawsuit was brought by the Seattle Metropolitan Chamber of Commerce. In her decision, Judge Mary Roberts said, “The court rules, as a matter of law, that the City’s payroll expense tax is a valid excise tax on business under the taxing authority granted to cities by the Washington State constitution and statutes.”
Seattle City Attorney Pete Holmes said, “Our success in this lawsuit wasn’t in doubt considering the legislature’s express authorization to impose a progressive tax like this, coupled with precedential case law. The COVID-induced recession has only deepened existing inequalities, and the Jumpstart tax revenues are essential to housing the unsheltered and preventing people from losing their homes in the first place. As we chart a new path forward, I hope the Chamber considers embracing today’s decision which will aid the less fortunate and help us all ‘build back better.’ My great thanks to Assistant City Attorney Kent Meyer for his successful defense of this legislation.”
Seattle City Councilmember Teresa Mosqueda (Position 8, Citywide), lead sponsor of the JumpStart tax legislation, said, “Congratulations to the broad swath of Seattle small and large business owners, residents, housing and homelessness advocates, labor unions, equity-based organizations, environmental organizations, and more, who helped me introduce and pass JumpStart Seattle, for yet another vote of confidence in our progressive revenue proposal. This is another victory for the residents of Seattle led by the City Attorney’s office who was instrumental providing counsel while drafting the bill, and now defending the law. I am glad to have this frivolous challenge behind us, since the reality is the opponents say they want the same investments JumpStart will fund: more affordable housing, pathways out of homelessness, and economic resilience for our local economy. We now have the assurance that this progressive revenue stream is coming as we seek to respond to the crises worsened by COVID-19.”