Joint Statement

In response to the release of the latest city of Seattle revenue forecast, the Association of Washington Business, Bellevue Chamber of Commerce, Seattle Metropolitan Chamber of Commerce, and Washington Roundtable issued this joint statement:

“While there is economic news coming in from every corner of the nation and world, policymakers in Washington state need to take note of what is happening right here at home. Seattle’s April Economic and Revenue Forecast and the city’s 2024 Year-End Revenue Report tell a cautionary tale; nearly all city of Seattle revenue sources indicate that business activity is down and falling:

  • 2024 Payroll Expense Tax collections fell short of the October forecast and are projected to be 18.5% below budget in both 2025 and 2026;
  • Business & Occupation Tax revenues dropped year-over-year in 2024 and projections were also adjusted downward for 2025 and 2026;
  • And, due largely to reduced construction activity, Sales & Use tax collections were essentially flat year-over-year in 2024 and are also projected to fall short of expectations this biennium.

Or said another way: B&O and Payroll Expense Tax are down, Sales Tax is flat, and all three of these major revenue sources for the city are forecasted to come in under budget this year and next. While there is likely no single driver, it is unquestionable that the policy choices made related to taxes and regulation are big ones. As Seattle’s chief economist has said, “businesses respond to incentives” – and our city and state cannot afford to continue incentivizing decisions to push jobs and economic activity out of our cities, regions, or state.”

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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 2,500 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 seattlechamber.com.

About Washington Roundtable
Washington Roundtable is a nonprofit organization comprised of senior executives of major private sector employers in Washington state. Roundtable members work together to effect positive change on public policy issues that they believe are most important to supporting state economic vitality and fostering opportunity for all Washingtonians. For more information, visit waroundtable.com.

About the Association of Washington Business
Formed in 1904, the Association of Washington Business is Washington’s oldest and largest statewide business association representing all sectors of business. AWB serves as both the state’s chamber of commerce and the manufacturers association. While its membership includes major employers like Boeing and Microsoft, 90% of AWB members employ fewer than 100 people. More than half of AWB’s members employ fewer than 10. For more about AWB, visit awb.org.

About the Bellevue Chamber
With hundreds of members representing tens of thousands of employees, the Bellevue Chamber is the relationship, policy, and business development hub for organizations throughout the Puget Sound region. We connect businesses with potential employees, sales opportunities, and social engagement, and provide our members access to industry experts and real-time information impacting our city and the Eastside. Learn more at bellevuechamber.org.