The last big push of changes for the city’s 2025 $8.3 billion budget plan is underway as the Seattle City Council will host a busy week of public hearings and committee meetings including debate on a balancing package that includes a roster of Capitol Hill public safety investments and a proposal for a new capital gains tax in the city.
Meanwhile, a group of services, housing, and transit advocates are calling on leaders to back off a plan to repurpose the city’s JumpStart payroll tax on its largest employers to help cover a looming, more than $250 million budget deficit.
Tuesday’s scheduled includes a 5 PM public hearing on the budget followed by a Wednesday council session with split morning and afternoon hearing sessions focused on 2025 revenue including the JumpStart debate, adjusting a multitude of city fees and fines, and consideration of a new capital gains tax in Seattle.
The capital gains tax proposal from North Seattle City Councilmember Cathy Moore would implement a 2% tax on capital gains over $250,000 from the sale or exchange of assets like stocks, bonds and business interests. It would ride on top of Washington’s 7% capital gains tax. Last week, state voters defeated Initiative 2109 that would have repealed the tax.
The revenue from the Moore proposal would be earmarked to fund housing and food assistance programs that are threatened by the city’s looming budget issues.
Changes to the JumpStart payroll tax will also be on the table. CHS reported here on Mayor Bruce Harrell’s decision to lean heavily on the JumpStart tax and City Hall job cuts to overcome a $250 million budget deficit from growing costs related to inflation and soaring wages.
This week, the council could cement Harrell’s proposal with a plan that would divert revenue from the tax originally implemented to fund housing and services budgets coming out of the pandemic. The plan would also eliminate the tax’s oversight committee.
A coalition of community advocacy groups, unions, and service providers is asking the council to limit the diversion to only the upcoming 2025-2026 budget before connecting JumpStart again to its original focus once the city’s budget gaps are overcome.
“Our coalition strongly urges the Seattle City Council to avoid making permanent policy decisions about the JumpStart tax during the limited time remaining in budget season,” a press release from the group reads. “We further demand that the mayor and council together practice good governance by convening the oversight committee as intended to provide accountability for this major new revenue source and its uses.”
The group includes representatives from 350 Seattle, Puget Sound Sage, Seattle/King County Coalition on Homelessness, the Housing Development Consortium, Downtown Emergency Services Center, Chief Seattle Club, and the Multicultural Community Coalition. (We have updated this list with additional information provided by organizers.)
The balancing package from the council already includes a batch of community-driven line items including $125,000 for a new Capitol Hill community safety coordinator position and $150,000 to support a new street Ambassador Program on Capitol Hill from District 3 representative Joy Hollingsworth.
The Select Budget Committee will take its final votes on the budget on November 19th followed by a final vote of the City Council on November 21st.
Visit seattle.gov for the schedule of this week’s sessions and opportunities for public comment. You can tune in to live proceedings here.
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The city is always in a money crunch because they’re often sued or blowing the wads of cash on stupid stuff. Stop the taxes and spend better.
Remember when Harrell ran on transparency? 🤣
Seattle’s message to companies with good-paying jobs — Amazon, anyone? — is clear: get out. And they are, with no new offices in Seattle and heading to the more receptive Eastside. Not every tech worker is a Bezos, Musk, or Gates; stock-based compensation forms a big chunk of their pay, and they take financial risk in lieu of an all-cash traditional salary. The Washington and proposed Seattle capital gains tax amounts to a thinly veiled income tax heavily concentrated on tech workers. Most cities would love to have good paying jobs fueling their local economy, but Seattle keeps vilifying these companies and workers while raiding their wallets under the guise of Robinhood economics. This isn’t a revenue issue; it’s a spending problem. If Seattle can’t trim the budget, I’ll bring my red pen. I’m paying my fair share, and yours, and several other people’s. I’m not Seattle’s ATM.