Downtown Seattle shed 30,000 jobs and $10 billion in office property value since the JumpStart Payroll Expense tax began in 2020, according to a report from the Downtown Seattle Association released Monday. The office vacancy rate in the downtown core climbed to 32 percent. Overall office values in the city fell by 48 percent since 2019, the DSA found.
The tax applies to Seattle businesses earning $7 million or more on annual payrolls. It was passed by the Seattle City Council in 2020 and has raised more money than originally projected over the past several years, according to Mayor Katie Wilson.
Bellevue, located miles away but without a comparable payroll tax or social housing tax, moved in the opposite direction. The city saw more jobs arrive in its core, lower office vacancy at 24 percent, and stability in office building values. Bellevue's assessed property values increased 7 percent since 2020, creating what the DSA called "a stark tale of two cities and two tax environments."
The DSA concluded that "Bellevue's more favorable tax climate has made it increasingly attractive to employers and investment relative to Seattle."
Mayor Katie Wilson said the JumpStart tax proved essential during economic hardship. "Seattle's JumpStart Payroll Expense Tax is a key reason why the city was able to successfully bounce back from the worst economic impacts of COVID," Wilson told Fox News Digital.
She argued the revenue prevented deeper budget cuts that would have damaged the local economy. "JumpStart revenue is the key reason why the city has been able to avoid the negative impacts of the deep budget cuts which would have otherwise been necessary over the past few years, and which would have been a massive drag on our local economy," the mayor said.
Downtown Seattle shed 30,000 jobs and $10 billion in office property value since the JumpStart Payroll Expense tax began in 2020, according to a report from the Downtown Seattle Association released Monday. The office vacancy rate in the downtown core climbed to 32 percent. Overall office values in the city fell by 48 percent since 2019, the DSA found.
The tax applies to Seattle businesses earning $7 million or more on annual payrolls. It was passed by the Seattle City Council in 2020 and has raised more money than originally projected over the past several years, according to Mayor Katie Wilson.
Bellevue, located miles away but without a comparable payroll tax or social housing tax, moved in the opposite direction. The city saw more jobs arrive in its core, lower office vacancy at 24 percent, and stability in office building values. Bellevue's assessed property values increased 7 percent since 2020, creating what the DSA called "a stark tale of two cities and two tax environments."
Bellevue also maintains a smaller property tax millage rate compared to Seattle in 2026. The DSA concluded that "Bellevue's more favorable tax climate has made it increasingly attractive to employers and investment relative to Seattle."
Mayor Katie Wilson said the JumpStart tax proved essential during economic hardship. "Seattle's JumpStart Payroll Expense Tax is a key reason why the city was able to successfully bounce back from the worst economic impacts of COVID," Wilson told Fox News Digital.
She argued the revenue prevented deeper budget cuts that would have damaged the local economy. "JumpStart revenue is the key reason why the city has been able to avoid the negative impacts of the deep budget cuts which would have otherwise been necessary over the past few years, and which would have been a massive drag on our local economy," the mayor said.
The competing claims reflect a fundamental disagreement about whether the tax helped Seattle weather crisis or accelerated its decline relative to its regional neighbor.
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For example, the Downtown Seattle Association reported that Bellevue's office vacancy rate is 24%, which is lower than Seattle's 32%.