Business payroll tax is hurting property values and business climate, according to the Downtown Seattle Association’s new report.
A new report from the Downtown Seattle Association published June 15 stated that downtown Seattle has lost around 30,000 jobs since 2020, when city leaders passed the “JumpStart” business tax, while neighboring Bellevue has become more attractive for businesses.
“What we have seen in downtown Seattle is not a ‘jump start,’ but instead, a slowdown,” the report stated. “Seattle has become a tax outlier in the region, and it’s costing the city jobs and tax revenue, while shifting the property tax burden to residents and small businesses, worsening overall affordability in the city.”
The nonprofit membership organization said it conducted an audit comparing the city’s tax environment and business climate with that of Bellevue.
In 2020, the City Council said the “JumpStart Tax,” which currently taxes Seattle businesses that pay more than $9,074,409 on payroll expenses with at least one employee making over $194,452, was to address COVID-19 economic impacts as well as to support existing city services and new affordable housing.
“We are in the midst of a health and economic crisis that even a strong economy like Seattle may not be able to recover from quickly,” Councilmember Teresa Mosqueda said in 2020. “JumpStart Seattle will … jump start our recovery with a relief plan that centers workers, small businesses and our most vulnerable community members.”
The report found the tax costs Seattle businesses between $1,450 and $9,390 per employee. In 2026, the JumpStart tax is projected to bring in $410 million. Bellevue has no such tax.
The report also showed that Seattle property tax compared to property value had increased nearly 48 percent from $3.79 per $1,000 in 2019, to $5.60 in 2026. In that same time, Bellevue property tax decreased from $3.72 per $1,000 to $3.12, an approximately 19 percent drop.
It said that downtown Seattle’s office properties have fallen 48 percent in value between 2020 and 2025, while downtown Bellevue’s had increased 7 percent during that same period.
It added that Seattle’s Central Business District had an office vacancy rate of 6.7 percent in 2019, which climbed to 32 percent in 2025, while Bellevue’s rose from 2.5 percent to 24 percent in that period.
By Dylan Morgan
