Letter of Concern Regarding Legislature Tax Proposals
Senator June Robinson, Chair
Representative Timm Ormsby, Chair
Senator Chris Gildon, Ranking Member
Representative Travis Couture, Ranking Member
Senate Ways & Means Committee
House Appropriations Committee
Dear Honorable Chairs and Ranking Members,
We are writing to you as elected leaders from across our state, seeking your help and partnership in finding sustainable ways to address the state’s fiscal challenges. As representatives of city governments with our own budget realities, we recognize and deeply appreciate the difficult task you face in crafting budgets that address the diverse needs of our communities.
We truly appreciate the predicament you are in, and we are grateful for the good work of public servants in Olympia who carry this heavy task on your shoulders. We earnestly want to talk with you to problem solve this together, as we did successfully at the outset of the pandemic. We know we can be creative and unstoppable when we work together to demand better than either/or solutions. We want the same things: funded basic services, a healthy and competitive economy, and the high quality of life that the Evergreen State is known for and that draws people to us.
We want to express our strong opposition to the proposed Payroll Excise Tax and the increased Business and Occupation tax on large businesses, which could destabilize Washington’s economy during a perilous time. We believe these measures, while well-intentioned, would have detrimental effects on our region’s economic competitiveness, job market, and overall fiscal health.
Our state has flourished as a hub for business and job growth — from warehouse and manufacturing hubs to high-tech innovation — and we don’t take that success for granted. The jobs that would be affected by these taxes don’t exist in a vacuum, either; those employees are also the customers for our restaurants, small retailers, professional services, skilled laborers, and more. We know the magnified impact of every tech job, for example, is roughly 3:1. That ripple effect is a good thing when those businesses grow — and we are very concerned when those same businesses shrink.
All these good jobs, together, make up our communities and our healthy state economy. These family-wage jobs are helping diversify our state’s economy for decades to come — but only if economic conditions continue to support their existence or expansion in Washington. The introduction of a Payroll Excise Tax and a B&O surcharge specifically targeting large employers risks undermining this stability and growth. We believe that these taxes will prompt companies to relocate to other states with a more affordable cost-of-living and more modest taxation. We know the sensitivity of these employers to local tax policies — Washington has plenty of past experience with how very impactful these moves can be.
At a time when so many things appear uncertain or at risk, this is the wrong time to introduce select tax policy that could have long-term impacts. As a trade-dependent state, Washington is already facing real economic pressures by the Federal Government’s tariff and related trade policies. As local officials, we are worried about the very real threat of a recession already, and we know our constituents are feeling the squeeze and the anxiety of how to stay afloat.
We urge you to set down these specific proposed tax measures and collaborate with local governments, businesses, and community stakeholders to develop sustainable solutions. This is no small feat, but the stakes are too high to not put our collective heads together to find a better path.
Thank you for your dedication to serving our state and for considering our perspectives on these critical issues.
Sincerely,
Mayor Nancy Backus, City of Auburn
Mayor Lynne Robinson, City of Bellevue
Mayor Carol Benson, City of Black Diamond
Mayor Jeff Wagner, City of Covington
Deputy Mayor Jim Ribail, City of Carnation
Mayor Jan Molinaro, City of Enumclaw
Mayor Jim Ferrell, City of Federal Way
Mayor Mary Lou Pauly, City of Issaquah
Mayor Kelli Curtis, City of Kirkland
Mayor Eric Zimmerman, City of Normandy Park
Mayor Angela Birney, City of Redmond
Mayor Armondo Pavone, City of Renton
