Seattle City Council to consider a city-level capital gains tax

Seattle City Councilmember Cathy Moore announced Friday that she will propose a new city-level capital gains tax to protect housing and food assistance programs as City Hall grapples with a budget deficit of more than $260 million.

Moore’s proposal would implement a 2% tax on capital gains in excess of $250,000. The tax is modeled after the new state-level capital gains tax, which was deemed constitutional by the Washington Supreme Court in 2023 and reaffirmed by 63% of Washington voters who rejected a ballot initiative to repeal it this election. The capital gains tax was even more popular in King County, where 72% of voters rejected the repeal.

Revenues from the Seattle capital gains tax would be used to pay for emergency rental assistance to help people avoid eviction, downpayment assistance for low- and moderate-income homebuyers and to support food assistance programs such as food banks. Moore chairs the Council’s Housing and Human Services Committee.

“After a thorough review of the budget and the mayor’s proposal to utilize payroll expense tax dollars to cover the general fund deficit, it’s clear that our city is still facing the need for additional revenue to address the unmet needs of thousands of households that are rent and food insecure,” said Moore, who represents northwest Seattle’s District 5, in a press release. “My revenue proposal will keep people housed and out of the cycle of homelessness, build stable communities that expand our tax base, and address the hidden but fast-approaching hunger crisis in our city.” 

https://www.cascadepbs.org/politics/2024/11/seattle-city-council-consider-city-level-capital-gains-tax