Seattle business tax rewrite ahead in early election returns
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Sarah Grillo/Axios
A ballot measure to overhaul Seattle's business and occupation tax was well ahead in early returns from Tuesday's election, while a city education levy also was on track to pass.
Why it matters: The business tax rewrite, Seattle Proposition 2, would raise about $80 million per year, which city officials say is needed to help close a projected budget gap of about $140 million.
Catch up quick: The plan would raise taxes on some of the cities' largest businesses while lowering what many small businesses pay.
The latest: The proposed business tax rewrite was winning 67.8% of the vote as of Tuesday night, although many more ballots remained to be counted.
Between the lines: While about 90% of Seattle businesses would pay lower taxes under Proposition 2, taxes are expected to rise for companies with more than $5.7 million in yearly gross revenue, according to city estimates.
- Critics argue the changes would hurt grocery stores and other high-grossing businesses with low profit margins.
Zoom out: The other citywide ballot measure, Proposition 1 — also known as the Families, Education, Preschool and Promise Levy — was winning approval from 76.7% of voters on Tuesday.
- If approved, the renewal levy would expand the Seattle Preschool Program and more than double the number of affordable child care slots paid for by the city to 1,400, from 600.
- It would also add five school-based health clinics while extending a city program guaranteeing all Seattle high school students two years of community college after they graduate.
By the numbers: The levy would cost the owner of a median-value Seattle home about $656 per year through 2031.
- That's roughly double the cost of the expiring levy, which comes in at about $300 for the median homeowner, according to city estimates.
What's next: More ballots will be counted in the coming days, with additional results scheduled to post online about 4pm Wednesday.