Seattle tax on big businesses upheld by state appeals court
Tax Law
An appellate court judge has upheld Seattle’s payroll tax, affirming a decision made in King County Superior Court last year.
In an opinion published Tuesday, the Division I Court of Appeals deemed Seattle’s JumpStart tax lawful, The Seattle Times reported.
“Engaging in business is a substantial privilege on which the city may properly levy taxes,” the opinion reads. “And the use of a business’s payroll expense is an appropriate measure of that taxable incident.”
The tax, passed by the Seattle City Council in 2020, requires businesses with at least $7 million in annual payroll to pay between 0.7%-2.4% on salaries and wages paid to Seattle employees who make at least $150,000 per year. The highest rate is applied to salaries of at least $400,000 at companies with at least $1 billion in annual payroll.
In 2021, the tax brought $231 million in revenue to the city.
The lawsuit, filed by the Seattle Metropolitan Chamber of Commerce in December 2020, asked the King County Superior Court to strike down the tax, calling it illegal.
The lawsuit was dismissed by a King County Superior Court judge last summer, and the chamber appealed the decision.
The chamber in a statement Tuesday said it will review the latest decision and determine their next step with members and attorneys.
Related listings
-
California court invalidates law requiring Trump tax returns
Tax Law 11/21/2019President Donald Trump does not have to disclose his tax returns to appear as a candidate on California’s primary ballot next spring, the state Supreme Court ruled unanimously Thursday.The law, the first of its kind in the nation and aimed squa...
-
Murphy, Norcross tax-break dispute to be heard in court
Tax Law 06/16/2019A dispute over business tax credits between New Jersey Gov. Phil Murphy and political powerbroker George Norcross is set to play out in a hearing before a Superior Court judge.Attorneys for the Democratic governor and insurance brokerage and hospital...
-
Kavanaugh to attend White House event, as elections loom
Tax Law 10/06/2018New Supreme Court Justice Brett Kavanaugh is returning to the White House for a televised appearance Monday with President Donald Trump less than a month before pivotal congressional elections.Kavanaugh will take part in an entirely ceremonial sweari...