In 2018, the city of Seattle approved and then repealed a head tax within a month. It would have levied a $275 per employee tax on businesses grossing more than $20 million annually. Sound Publishing file photo

In 2018, the city of Seattle approved and then repealed a head tax within a month. It would have levied a $275 per employee tax on businesses grossing more than $20 million annually. Sound Publishing file photo

County head tax bill passes committee

Bill would let King County levy a tax on businesses to fund housing and address homelessness.

A proposed tax on businesses to help address homelessness in Washington state was passed out of committee, moving it closer to a full floor vote.

HB 2907 would allow counties with a population of at least 2 million to levy up to a 0.2 percent tax on the payrolls of businesses that pay their employees more than $150,000. King County is the only county in the state that meets the population requirement. If approved by the Legislature, the King County Council would still need to approve such a tax.

King County Executive Dow Constantine said the legislation could generate some $121 million annually for housing, homelessness, public safety and behavioral health services. If approved, the tax would last 25 years.

The House bill was debated last week at hearings of the Finance Committee. The bill’s prime sponsor is Rep. Nicole Macri (D-Seattle).

“This bill represents a regional approach necessary to address homelessness in King County, the county that is experiencing the worst crisis around homelessness,” Macri said Feb. 4.

Macri said the bill represented a step in the right direction. The bill was ultimately passed with a do-pass recommendation Feb. 7 with an 8-4 vote along party lines.

Rep. Drew Stokesbary (R-Auburn) questioned why the bill would only affect King County. Macri said the bill could be replicated and scaled to other areas of the state.

Before the vote Feb. 7, Stokesbary proposed several amendments, which were all rejected. They included provisions that would ban supervised drug consumption sites and camping within 500 feet of schools and parks, along with restrictions on how money could be spent. Democrats on the committee said those details should be worked out as part of the negotiation process.

Republicans said they were additionally concerned about what they viewed as stakeholders having influence on the process.

“We should not cede our authority as legislators to those stakeholders. We should not let them negotiate with each other and tell us what to pass,” Stokesbary said. “We should negotiate with each other in consultation with them, and tell them what we’re going to pass.”

Rep. Noel Frame (D-Seattle) disagreed, saying the Legislature frequently consults with stakeholders before drafting legislation.

However, at the Feb. 4 public hearing, it appeared at least some stakeholders had been left out. The mayors of Auburn and Kent both testified, saying they learned about the bill through the news. Kent Mayor Dana Ralph said she was feeling “frustration. There’s a lot of words that we can use about where we’re at today.”

Ralph said she hoped cities in King County would be included in the process moving forward. King County Councilmember Reagan Dunn also penned a statement against the proposal.

“Punishing local workers and employers for their talent and success is destructive for our entire region and fundamentally un-American. We’ve seen this type of money grab fail before and it should fail again,” Dunn said.

In 2018, the city of Seattle approved and then repealed a similar head tax within a month. It would have levied a $275-per-employee tax on businesses grossing more than $20 million annually. It would have generated $47 million annually.

However, some businesses that would have presumably been taxed under the state’s proposal did show up to support the head tax. During the public hearing, Expedia Group’s Government Affairs Manager Richard de Sam Lazaro said the company approved the bill. The Seattle Times reported other large corporations like Amazon, Alaska Airlines, Costco, Microsoft and Starbucks had also been receptive to the bill.

Additionally, Samantha Conley of SEIU 199NW said their union was in support of the bill.

A report released last month by consulting firm McKinsey and Company states that the county should be spending between $450 million and $1.1 billion each year for 10 years to fully address the homelessness crisis.

“We need more housing now, and we need more services for people in crisis,” Macri said.


Talk to us

Please share your story tips by emailing editor@kentreporter.com.

To share your opinion for publication, submit a letter through our website https://www.kentreporter.com/submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) Please keep letters to 300 words or less.

More in News

File Photo
Kent Police officer shoots, injures man in Des Moines

Feb. 14 incident under review by Valley Independent Investigative Team

People line SE 272nd Street in Covington on Presidents Day, Feb. 17 to protest many of the actions by the Trump administration. COURTESY PHOTO, Ron Auerbach
People line Covington street to protest Trump, Musk actions

One of many protests across the nation against ‘the anti-democratic and illegal actions’

Charlene Honda at the Day of Remembrance on Feb. 8, 2025, at the Washington State Fairgrounds. Photo by Bruce Honda
Federal Way woman recalls her time in U.S. concentration camp

‘It’s good for people to hear what happened so that it never happens again.’

t
Man fatally shot by Kent Police had high blood alcohol level

Crime lab test results show 0.27 blood concentration level in August 2024 shooting at apartments

Courtesy Photo, City of Kent
Construction set in Kent for 74th Ave. S. and Willis Street

Crews to install traffic islands, curbing at busy intersection

t
Kent Police Blotter: Jan. 26 to Feb. 6

Incidents include vehicle prowls, carjacking arrest, police pursuits, shots fired

Kentlake High School. COURTESY PHOTO, Kent School District
Former Kentlake High School teacher pleads guilty to sex charge

Jesse Webb, 46, pleads guilty to communication with a minor for immoral purposes

t
Kent School Board appoints Teresa Gregory to vacant seat

Gregory selected from among 7 finalists to replace Awale Farah

Karen Keiser. COURTESY PHOTO
Former state Sen. Karen Keiser appointed to state Exchange health board

Health Benefit Exchange formed as part of Affordable Care Act

Crews on the SR 509 Completion Project in south King County install the framework for a new bus stop on SR 516, also known as Kent-Des Moines Road. The SR 509 Completion Project includes new or improved connections to existing transit centers and stops. COURTESY PHOTO, WSDOT
Eastbound SR 516 ramp to I-5 in Kent to close for 4 months

Drivers heading to northbound I-5 will use a temporary left turn lane

Courtesy Photo, King County
Tacoma boy, 17, charged with murder in November 2024 Kent case

Reportedly fired six shots into vehicle that killed 21-year-old SeaTac man on West Hill

t
CW series ‘Police 24/7’ features Kent indecent exposure case

Department also part of future TV episodes after crews responded on calls with police in 2024