Seattle chamber ends fight over city’s JumpStart business tax

The Seattle Metropolitan Chamber of Commerce has determined to finish its struggle to attraction a latest Washington Courtroom of Appeals ruling, which upheld the King County Superior Courtroom’s dismissal of a lawsuit that contested the constitutionality of a controversial payroll tax, often known as JumpStart Seattle.

King County Superior Courtroom decide Mary Roberts had dominated in June {that a} payroll tax that applies to companies that spend $7 million or extra on payroll in Seattle is “constitutionally permissible.”

“We’ve determined the Chamber won’t attraction this latest court docket determination. In the end, with two decrease court docket rulings towards us, it’s unlikely that there might be a distinct end result for this authorized technique on the Washington State Supreme Courtroom — and no assure the court docket will even settle for this case,” mentioned Rachel Smith, president and CEO of the chamber.

The chamber had argued that JumpStart was an unlawful tax on workers and their proper to make a residing, whereas Seattle’s legal professionals mentioned the measure was a tax on employers and their enterprise actions.

Seattle Metropolis Council voted 7-2 to move the tax on July 6, 2020. It was launched by Councilmember Teresa Mosqueda.

“We are able to jump-start our financial system and do it in an equitable and inclusive method,” Mosqueda beforehand mentioned.

About two weeks after the tax handed, then-Seattle Mayor Jenny Durkan refused to signal the tax invoice however she didn’t veto it both.

Whereas the Seattle Metropolitan Chamber of Commerce has ended its lawsuit, it plans to “convey new focus to our advocacy work on town of Seattle price range to carry metropolis leaders accountable for what you and your workers, the voters, need — a metropolis price range that aligns with priorities and delivers motion on public security, affordability, and homelessness.”