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A new bill has been proposed to help make the state’s prohibition on local income taxes so clear even Seattle can understand it. Though the current law prohibiting a local income tax was clear enough for King County Judge Ruhl to invalidate Seattle’s illegal income tax and keep the state Supreme Court from feeling any urgency to hear a direct appeal, Seattle isn’t alone in wanting cities to have the ability to impose a local income tax. The Association of Washington Cities (AWC) filed an amicus brief in the case arguing every city already has the right to impose a local income tax. This despite the clear language of RCW 36.65.030 (Tax on net income prohibited).
Since the current local income tax prohibition is apparently too difficult for some to understand, several lawmakers led by Rep. Vick have proposed HB 1588 (Clarifying the prohibition of the imposition of a local income tax).
According to the bill:
“The legislature restates its refusal to delegate to a city, county, or city-county, as a whole or as a governing body, the power to impose a tax on the personal income of individuals or households . . . This prohibition, and the definition of income specifically, are to be construed broadly by any reviewing court to affect the policy of this state that there exist absolute clarity and certainty in state law that there is no local government authority to levy any form of income tax on individuals or households.”
Because many in the legislature say they oppose an income tax, this bill should fly through Olympia with little opposition. Especially considering the unequivocal message voters keep sending on income taxes.
Additional Information
State Supreme Court rejects direct review of Seattle income tax case
Judge rules Seattle income tax illegal
AWC argues every WA city should be able to impose an income tax
