Downtown Seattle JumpStart payment tax linked to 30K lost jobs, report says
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A new report from the Downtown Seattle Association (DSA) says Seattle has lost thousands of jobs and a significant amount of property in the years since it began implementing the “JumpStart” tax in 2020.
Monday’s report compared Seattle’s situation to its neighboring city, Bellevue, which has no comparable income tax or public housing tax, and found that while Seattle’s workforce and assets have declined, Bellevue’s has remained strong.
“[S]as of 2020, what we’ve seen in downtown Seattle is not a ‘jump start,’ but instead, a slow decline,” the report said. The office vacancy rate has increased to 32% downtown. And more than $10 billion in office space has been lost.”
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The Downtown Seattle Association (DSA) found a big difference between businesses in Seattle and Bellevue because of their different tax policies. (Al Drago/Getty Images)
It continued, “Currently, in Bellevue, as of 2020, the city has seen more jobs coming to its core, lower office space, and more stable office building prices. This makes a strong case for two cities and two tax havens just miles apart.”
DSA reported that Bellevue experienced a 7% increase in assessed value compared to a 48% decrease seen in Seattle office buildings. While both cities have large job vacancies as of 2020, Seattle’s rate is much higher at 32% compared to Bellevue’s 24%.
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In addition to having no property tax or social housing tax, Bellevue also has the lowest property tax rate compared to Seattle in 2026. This, the DSA report said, presented Bellevue as an ideal location for business owners.
Seattle’s office space has dropped 48% since 2019, according to a DSA report. (Reuters/Chris Helgren)
“When comparing business tax burdens and broader tax practices in Seattle and Bellevue, the difference is clear: Bellevue’s tax climate has made it more attractive to employers and investment relative to Seattle,” the report concluded.
Speaking on Fox News Digital, Seattle Mayor Katie Wilson defended the city’s JumpStart Payroll tax as a cornerstone of Seattle’s resilience in tough economic times.
“Seattle’s JumpStart Payroll Expense Tax is a key reason why the city has been able to successfully bounce back from the worst economic impacts of COVID. Because of Seattle’s continued economic strength, this tax on the highest salaries paid by the largest corporations has raised much more money over the past few years than originally thought,” the mayor said.
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He continued, “JumpStart’s revenue is a key reason why the city has been able to avoid the negative impacts of deep budget cuts that would otherwise have been necessary a few years ago, and which would have been a huge drag on our local economy.”
Seattle Mayor Katie Wilson defended the jumpstart payroll tax after the DSA report was released. (David Ryder/Reuters)
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The JumpStart Payroll Expense Tax was first passed by the Seattle City Council in 2020 and imposed a tax on Seattle businesses that earn $7 million or more in annual payroll.
