Seattle’s working funds has gone one route in recent times: Up. And up. And up.
In 2018, it was $4.63 billion. This yr, it was $7 billion.
By no means within the metropolis’s historical past has municipal authorities taxed and spent a lot.
It’s not about assembly the wants of a rising inhabitants. In 2018, the U.S. Census decided that Seattle’s inhabitants was 742,889. This yr, it’s estimated to be about 816,600 — a rise of about 10%. In the identical interval, Seattle’s funds elevated by about 51%.
But, elected officers’ thirst for extra taxes continues.
Prop. 2 on the November poll would make modifications to town’s enterprise and occupation tax, eliminating it for about 75% of companies whereas elevating it for others. A key level: B&O is levied on revenues, not earnings, which is essential for companies comparable to grocery shops that function on skinny margins.
If handed, the levy would cut back the variety of companies paying B&O tax from about 21,000 to five,000, elevating about $80 million for metropolis coffers.
In line with the mayor’s workplace, about $51 million can be used to take care of packages in areas together with meals entry, gender-based violence, small-business helps, emergency shelter, homelessness prevention, employees’ rights and protections, public well being, workforce growth, arts and tradition, and immigrant and refugee companies.
As much as $30 million can be utilized to offset federal cuts, together with $9 million for homelessness companies and $6 million for meals packages.
Metropolis authorities people say the funds has grown a lot through the years as a result of voters need extra companies and are keen to pay for them. That is largely true.
However at this second, Seattle’s enterprise group is gasping for air.
General, Seattle-area employment grew solely 0.8% in 2024, in comparison with the 1.3% development on the nationwide stage, in keeping with the Workplace of Financial and Income Forecasts.
In line with the Downtown Seattle Affiliation, retail storefront emptiness in downtown neighborhoods is about 20%, with 543 vacant storefronts as of final March.
Earlier this yr, the Legislature handed a $9.4 billion tax package deal funded largely by will increase to enterprise taxes.
“Elevating a B&O tax that’s already the very best within the nation doesn’t remedy town’s self-inflicted spending issues,” in keeping with a press release from the Downtown Seattle Affiliation on Prop. 2. “At a time through which we’re going through financial uncertainty, this measure units up Seattle for extra hurt than good.”
Within the subsequent few months, Sound Transit’s Hyperlink gentle rail is anticipated to supply companies throughout Lake Washington, rising financial competitors between Seattle and the Eastside.
Seattle employers want a shot within the arm, not a slap within the face.
Reject Seattle Prop. 2.
