Bellevue City Council take stance opposing state jobs taxes

Bellevue City Councilmembers were unified and adamant at last night’s meeting as they adopted a letter to state legislators establishing that the City strongly opposes the Business & Occupation tax hike, and the creation of a statewide "Jump Start-style" Payroll Excise Tax — both of which are under consideration by state lawmakers in Olympia.  

“Bellevue understands that these taxes will push jobs out of state,” said former state budget writer and current Bellevue Chamber President and CEO, Joe Fain. “We applaud the Bellevue City Council for taking swift, decisive, and united action in opposing them.”

“These proposals are an extinction-level event for Washington’s economy.” 

Councilmember Dave Hamilton helped lead the effort, stating, "Just as Bellevue has benefited from bad tax policy implemented elsewhere, other states or countries will happily reap the benefits of a misguided decision to impose a statewide head tax here in Washington." 

Hamilton’s remarks echoed similar sentiments from Seattle Mayor Bruce Harrell following the release of Seattle's latest revenue projects, which show a steep decline in the "Jump Start" tax receipts. "[W]e know this decrease in revenue is aligned with recent reports of major employers moving thousands of high-paying jobs out of Seattle to other cities in our region,” he said.

Specifically, Amazon alone shifted over 20% of its Seattle-based workforce out of Seattle and into Bellevue soon after Seattle adopted its local payroll tax. 

Each Bellevue councilmember spoke resolutely about the damage that would be done were lawmakers to create a statewide payroll tax, each voicing their strong belief that these sought-after jobs would likely relocate out of state over time. The Council ultimately directed staff to send the letter to Bellevue-area legislators, and to work with neighboring jurisdictions to invite other City leaders to join in expressing concerns over these tax proposals.