State appeals court affirms Seattle payroll tax

As expected, this morning a state Court of Appeals panel handed down a ruling affirming the legality of the City of Seattle’s payroll tax.

The Seattle Chamber of Commerce had sued to block it, arguing that it was an illegal tax on the right of employees to work, as prohibited by Cary vs. Bellingham. The appeals court affirmed a lower court ruling that the payroll tax was not a tax on employees, since it accrues to and is paid by employers.

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