Seattle City Council to consider putting social housing payroll tax on fall ballot

(The Center Square) – A proposal to create an excess compensation payroll tax to fund Seattle's affordable housing network has garnered enough signatures to be placed on this November's ballot, but whether that happens remains to be seen.

On Friday, King County Elections verified that there were sufficient signatures to place the community-led Initiative 137 on November ballots. Now the Seattle City Council has to act by Aug. 6 in order for the measure to be placed before of voters this fall.

However, if the council were to act by then, it would not have enough time to prepare, refer and vote on its own alternative ballot measure.

The city council has an absolute deadline of early October for I-137 to be placed on the February 2025 ballot.

Putting I-137 on the November ballot would mean higher turnout because of the presidential election. Putting I-137 on the ballot in February as a special election in an odd year would translate into fewer voters casting a ballot in the measure.

House Our Neighbors created the initiative, which would levy a 5% payroll tax on Seattle employers with workers who make more than $1 million a year. Utilized revenue from the proposed 5% compensation tax would go to fund social housing in Seattle available to all regardless of income.

The organization's working definition of social housing is housing that is removed from market speculation, is publicly-owned and funded, and is available to people without income restrictions.

Rent rates at social housing units would ideally be no more than 30% of the household’s income, according to House Our Neighbors. That means if a tenant were to make more money, then said tenant would see their rent adjusted to continue to match the 30% rate. There is no time limit on how long a tenant can stay at a social housing unit.

The advocacy group previously estimated that the social housing payroll tax would generate $52 million annually and could fund 2,000 units of social housing in the city over 10 years.

During a city council briefing on Monday, Seattle City Councilmember Cathy Moore said she was personally interested in the city council exploring an alternative ballot measure that would ensure tax dollars are spent on lower-income households that range from 50% to 60% of the Seattle area's median income.

Moore noted that she is hesitant to rush an alternative measure if it is not deemed viable.