Suit filed over new income tax for wealthy Seattle residents

AP News
Posted: Jul 21, 2017 9:24 PM

SEATTLE (AP) — As expected, attorneys have filed a lawsuit challenging Seattle's new ordinance to tax high-income earners.

Multiple news outlets reported Friday that the suit was filed on behalf of Seattle resident and investment manager Michael Kunath.

The lawsuit was filed just minutes after Mayor Ed Murray signed the ordinance with little fanfare on July 14.

The suit alleges the city's plan to impose a 2.25 percent tax on for single taxpayers who earn more than $250,000 and joint filers who earn more than $500,000 breaks state law prohibiting cities from collecting taxes on net income.

Kunath's lawyer Matthew Davis says the lawsuit suit does not seek an injunction to stop the tax immediately, because it wouldn't be collected until April 2018.

City attorney Pete Holmes and Davis said they expect this lawsuit to be the first of many.