Appellate Court Upholds Seattle’s Payroll Tax

SEATTLE (AP) – An appellate court judge has upheld Seattle’s payroll tax, affirming a decision made in King County Superior Court last year.

The Seattle Times reports in an opinion published Tuesday, the Division I Court of Appeals deemed Seattle’s JumpStart tax lawful.

The lawsuit was filed by the Chamber of Commerce in 2020, arguing the tax is illegal.

Companies with annual payrolls over $7 million are taxed under the measure based on their pay to employees making over $150,000 per year.

In 2021, the tax brought $231 million in revenue to the city.

The chamber in a statement Tuesday did not indicate whether it planned to appeal the decision.

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