CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
title
AN ORDINANCE relating to the Payroll Expense Tax; adjusting the allocation of tax proceeds; eliminating the Payroll Expense Oversight Committee; amending Section 5.38.055 of the Seattle Municipal Code; adding a new Section 5.38.105 to the Seattle Municipal Code; and repealing Section 3.35.100 of the Seattle Municipal Code.
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WHEREAS, the growth of the City's General Fund resources is significantly constrained by state regulations that limit the annual increase in the City's property tax revenues to one percent plus the value of new construction; and
WHEREAS, the growth of the City's General Fund resources is further constrained by the pattern of slow regional economic growth that has emerged in the post-pandemic period; and
WHEREAS, facing these constraints and increased demand for critical services such as public safety, basic shelter and affordable housing, and access to affordable nutritional food, the City has become reliant on revenues from the JumpStart Payroll Expense Tax to pay for basic municipal services and serve those most in need; and
WHEREAS, the spending policies prescribed by this ordinance are specifically intended to address the remaining downstream economic effects of the COVID-19 pandemic and their impact on City finances, and the Council intends to review these policies in advance of the 2029-2030 biennial budget and either amend or reaffirm them given the economic and financial conditions prevailing at that time; and
WHEREAS, the City has used JumpStart Payroll Expense Tax proceeds to pay for services such as mental health and affordable housing that are most appropriately addressed by State or County Government, and the City must maintain the authority to impose JumpStart Payroll Expense Tax until the State or County sufficiently funds these services; and
WHEREAS, in 2020, the City Council passed the JumpStart Payroll Expense Tax on certain salarie...
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