Seattle Voters Approve Additional Payroll Expense Tax

Voters in Seattle approved a ballot initiative on Feb. 11 to establish an additional payroll expense tax, separate from the city’s existing payroll expense tax.

Proposition 1A proposed the implementation of Initiative 137, which proposed a new payroll expense tax of 5% for employers doing business in Seattle, in addition to the existing payroll expense tax. The new tax will apply to annual compensation above $1 million paid to any employee in Seattle, and the proceeds from the tax will be used to fund the development and maintenance of social housing in Seattle.

Proposition 1B proposed the implementation of the ...