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HomeMy WebLinkAboutIncomeTaxRes.docx-132889288257496012.BOARD OF COUNTY COMMISSIONERS COUNTY OF KITTITAS STATE OF WASHINGTON RESOLUTION NO. 2022-_______ IN THE MATTER OF OPPOSITION TO IMPOSITION OF LOCAL INCOME TAX WHEREAS, Article VII,§ 1 of the Washington State Constitution establishes the basic framework for taxation in the state of Washington, including what shall be permitted as a tax; and WHEREAS, municipalities have no inherent power to levy taxes but must be delegated such authority by the Legislature; and WHEREAS, such delegation of authority is not self-executing, but must rather be accompanied by a specific grant of taxing authority; and WHEREAS, RCW 36.32.120 does not contain a specific grant of authority for a county to impose an income tax and there is no other currently existing statutory authority that would authorize a county to impose an income tax; and WHEREAS, The City of Seattle (which does have such a specific grant of authority to impose income taxes under RCW 35.22.280) imposed such a tax which was invalidated as violating Washington’s Constitutional requirement that taxes be uniform rather than graduated. Kunath v. City of Seattle, 10 Wash. App. 2d 205 (2019); and WHEREAS, The Court in Kunath also struck down as unconstitutional the provisions of Ch. 36.65 RCW which, among other things, prevented counties from imposing a net income tax; and WHEREAS, the Washington State Supreme Court refused to review the holding in Kunath and,hence, that holding stands at this time; and WHEREAS, the Board of Kittitas County Commissioners desires to declare its position regarding the potential for local governments to impose a local income tax on its residents and businesses; and WHEREAS, businesses large and small provide the economic lifeblood in our County, the region, state, and country; and WHEREAS, the Board of Kittitas County Commissioners knows that a strong and encouraging business climate is one of the best ways to attract and retain good businesses to employ people in family wage jobs; and WHEREAS, while imposing a local income tax may generate additional revenue in the short term, it may very well result in less long-term revenue due to the dampening effect it would have on our businesses; and WHEREAS, the Board of Kittitas County Commissioners encourages all municipalities throughout Kittitas County to provide the same protection from the adoption of another onerous tax for their citizens. NOW THEREFOREBE IT RESOLVED, the Board of Kittitas County Commissioners, hereby opposes the imposition of a local income tax on the businesses and residents of unincorporated Kittitas County. Such a tax would be in direct conflict with the high value Kittitas 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 Kittitas County not put unnecessary hurdles in the way of their success. As such, the Board of Kittitas County Commissioners opposes the imposition of a local income tax in the event a local income tax is determined legal, specifically authorized, or permissible by the Washington State Legislature or the Washington State Supreme Court. DATED this __________ day of ____________________, 2022, at Ellensburg, Washington.BOARD OF COUNTY COMMISSIONERSKITTITAS COUNTY, WASHINGTON__________________________________________Chair__________________________________________Vice-Chair__________________________________________Commissioner ATTEST: _____________________________ Clerk of the Board