Here's what's next for Seattle's payroll tax after failed court challenge
Now that King County Superior Court Judge Mary Roberts has tossed out a challenge to Seattle's payroll tax, it's likely the new tax is here to stay. Still, there's plenty left to sort out.
The challenge to the tax, aka JumpStart Seattle, was filed by the Seattle Metropolitan Chamber of Commerce. Roberts rendered her decision on June 4.
The tax affects companies with Seattle payrolls of at least $7 million with employees making at least $150,000 a year. The first payments are due by Jan. 31, 2022.
Cory Johnson, attorney at the Seattle-based tax law firm Colvin and Hallett, said this is the final judgment if the chamber doesn't file an appeal.
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The Seattle City Council approved JumpStart in July 2020, led by Councilmember Teresa Mosqueda. JumpStart is a tiered revenue plan with a tax rate starts at 0.7% and goes as high as 2.4% for companies with annual payroll of at least $1 billion on employees making at least $400,000. Businesses, not individual employees, pay the tax.
https://www.bizjournals.com/seattle/news/2021/06/15/payroll-tax-what-is-next.html