Court: Seattle wealth tax unconstitutional but so is tax ban

(Information from: The Seattle Times, http://www.seattletimes.com)

SEATTLE (AP) — The Washington state Court of Appeals has ruled that Seattle’s tax on wealthy households is unconstitutional but so is the state’s law banning cities from taxing net income.

The Seattle Times reports in doing so Monday the Court of Appeals declared void a 35-year-old ban enacted by the Legislature and opened the door to a battle at the state Supreme Court. The court says the ban is unconstitutional because the Legislature made a technical error in 1984.

Washington is one of the few states in the country without a graduated income tax or any income tax.

Seattle has faced legal hurdles since adopting a 2.25% income tax in 2017 including lawsuits.

Seattle had estimated the measure would raise about $140 million per year to pay for housing, education and transit and to reduce other, more regressive taxes.