Responding to last July’s shocking decision from the state court of appeals, a bipartisan group of Senators has introduced SB 6462 (Reaffirming the prohibition of the imposition of a local income tax). The bill is sponsored by Senators O'Ban, Braun, Padden, Mullet, Zeiger, Cleveland, Sheldon, Schoesler, Brown, Warnick, Takko, Honeyford, Walsh, Wilson, L., Holy and Ericksen.
According to SB 6462:
A similar proposal has also been introduced by several lawmakers in the House (HB 2479).
Based on the recent election results in Spokane and a new statewide poll, voter opposition to an income tax remains strong.
In response to the question, “In your opinion, should local governments be allowed to impose an income tax?” 72 percent of Washington voters said “no.” Opposition to local income taxes was reflected by large majorities of Republicans, Democrats and Independents. Even in Seattle, voters opposed a local income tax, though sentiment was split 43 percent yes, 49 percent no.
The poll findings echo the results of Spokane’s Proposition 2, which offered the city’s voters a chance to prohibit the city government from imposing a local income tax. The income tax ban passed with more than 72 percent of the vote. The city council of neighboring Spokane Valley unanimously passed a local income tax ban a few week later, followed in December in Granger by the Granger City Council.
The lack of an income tax has long been advertised by the State Department of Commerce as being a “competitive advantage” for Washington. Also, during an interview with TVW this week, State Treasurer Davidson said we should "take great pride in the fact" we don't have a state income tax.
Neither SB 6462 nor HB 2479 is currently scheduled for a public hearing.