(SEATTLE – May 28, 2021) – The Seattle Metropolitan Chamber of Commerce and the City of Seattle met in King County Superior Court today over the Seattle City Council’s “JumpStart” payroll tax. In July 2020, the Seattle City Council passed this tax on paying employee compensation, which is unconstitutional in the state of Washington. Judge Mary Roberts heard arguments from both the Chamber and the city of Seattle and Roberts said she will issue a ruling next week.
“The city’s legal arguments today were unconvincing,” said Seattle Metropolitan Chamber of Commerce president and CEO Rachel Smith. “The Seattle payroll tax is a tax on the right to earn a living, which the State Supreme Court has found unconstitutional. Our attorneys laid out a strong case today and we believe that Judge Roberts will ultimately agree with the Chamber’s three core arguments: that the JumpStart Tax is unlawful, invalid and unconstitutional.”
“The top priority for the Chamber and our members – large and small employers – is a strong and inclusive economy recovery,” Smith added. “This tax compounds both the challenges and uncertainty facing employers today. What we hear consistently from members is the need for a long-term recovery plan, and we stand ready to work with city leaders to develop policies that deliver outcomes. We encourage city leaders to take a different approach than the one that resulted in this challenge – a legal process for which Seattle’s taxpayers are footing the bill.”
More than 200 street-level stores and businesses in Seattle shut down permanently in 2020, and tens of thousands of jobs have been lost due to the pandemic, according to data from the Downtown Seattle Association. In addition to the illegality of The JumpStart Tax, it will also increase the cost of doing businesses and adds to the barriers already facing the recovery of downtown Seattle and the regional local business community. The Chamber looks forward to Judge Roberts’ ruling next week.
About the Seattle Metropolitan Chamber of Commerce
The Seattle Metropolitan (Seattle Metro) Chamber of Commerce is the regional business advocacy organization that engages the innovation and entrepreneurship of its 2,400 members to promote inclusive economic prosperity. Founded in 1882 by local business leaders, the Chamber today is an independent organization representing a regional workforce of approximately 750,000. For more information, visit www.seattlechamber.com.
