Spokane County Commissioners unanimously adopted a resolution opposing a local income tax December 14. Spokane County is the third county to act, joining Franklin County and Yakima County as well as 11 Washington cities with local income-tax bans, including Battle Ground, DuPont, Granger, Kennewick, Longview, Moses Lake, Richland, Spokane, Spokane Valley, Union Gap and Yakima.

From the Spokane County resolution: “Board of County Commissioners of Spokane County opposes the imposition of a local income tax on the businesses and residents of unincorporated Spokane County. Such a tax would be in direct conflict with the high value Spokane County places on promoting economic development through the attraction and expansion of financially healthy, family wage paying employers. Small businesses are the backbone of our local, regional, state, and national economy and it is imperative that Spokane County not put unnecessary hurdles in the way of their success. As such, the Board of Spokane County Commissioners opposes the imposition of a local income tax in the event a local income tax is determined legal and permissible by the Washington State Legislature or the Washington State Supreme Court.”

Local governments are passing these bans in response to a surprising 2019 Court of Appeals ruling that opened the door to a flat 1% local income tax. The state Supreme Court let this ruling stand by not hearing the appeal.

Earlier this year the legislature adopted an unconstitutional capital gains income tax (while refusing to pre-empt cities from imposing a local version) with the stated goal from supporters of using the courts to open the door to income taxes across the state. The capital gains income tax is currently subject of litigation.

Not only have Washingtonians rejected 10 straight income tax ballot measures (including six proposed constitutional amendments), but last week the WA Tax Structure Work Group received an update from its consultant on the community meetings and outreach that occurred earlier this year showing voters are still opposed to an income tax.

As more cities and counties act to ban a local income tax, hopefully this clear and consistent message opposing an income tax will finally be heard by state lawmakers and the Governor.