Washington Superior Courtroom Finds Metropolis of Seattle’s Payroll Expense Tax on Salaries Constitutional

June 8, 2021, 5:00 a.m.

The Washington Superior Court ruled Seattle’s wage tax constitutional on June 7th. The city has enacted an ordinance that allows certain companies doing business in the city to collect the tax. One organization filed a motion for a preliminary ruling claiming the tax was unconstitutional. The city claimed the tax was a constitutionally permissible consumption tax on the privilege of doing business. The High Court found: 1) the city had the power to tax business activities; 2) labor tax was a tax measured on labor costs and paid by businesses with employees in the city; 3) …

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