
Letter of Concern Regarding Legislature Tax Proposals
Dear Honorable Chairs and Ranking Members,
We are writing to you as elected leaders from across our state, seeking your help and partnership in finding sustainable ways to address the state’s fiscal challenges. As representatives of city governments with our own budget realities, we recognize and deeply appreciate the difficult task you face in crafting budgets that address the diverse needs of our communities.
We truly appreciate the predicament you are in, and we are grateful for the good work of public servants in Olympia who carry this heavy task on your shoulders. We earnestly want to talk with you to problem solve this together, as we did successfully at the outset of the pandemic. We know we can be creative and unstoppable when we work together to demand better than either/or solutions. We want the same things: funded basic services, a healthy and competitive economy, and the high quality of life that the Evergreen State is known for and that draws people to us.
We want to express our strong opposition to the proposed Payroll Excise Tax and the increased Business and Occupation tax on large businesses, which could destabilize Washington’s economy during a perilous time. We believe these measures, while well-intentioned, would have detrimental effects on our region's economic competitiveness, job market, and overall fiscal health.
Our state has flourished as a hub for business and job growth – from warehouse and manufacturing hubs to high-tech innovation – and we don’t take that success for granted. The jobs that would be affected by these taxes don’t exist in a vacuum, either; those employees are also the customers for our restaurants, small retailers, professional services, skilled laborers, and more. We know the magnified impact of every tech job, for example, is roughly 3:1. That ripple effect is a good thing when those businesses grow – and we are very concerned when those same businesses shrink.
All these good jobs, together, make up our communities and our healthy state economy. These family-wage jobs are helping diversify our state’s economy for decades to come – but only if economic conditions continue to support their existence or expansion in Washington. The introduction of a Payroll Excise Tax and a B&O surcharge specifically targeting large employers risks undermining this stability and growth. We believe that these taxes will prompt companies to relocate to other states with a more affordable cost-of-living and more modest taxation. We know the sensitivity of these employers to local tax policies – Washington has plenty of past experience with how very impactful these moves can be.
At a time when so many things appear uncertain or at risk, this is the wrong time to introduce select tax policy that could have long-term impacts. As a trade-dependent state, Washington is already facing real economic pressures by the Federal Government’s tariff and related trade policies. As local officials, we are worried about the very real threat of a recession already, and we know our constituents are feeling the squeeze and the anxiety of how to stay afloat.
We urge you to set down these specific proposed tax measures and collaborate with local governments, businesses, and community stakeholders to develop sustainable solutions. This is no small feat, but the stakes are too high to not put our collective heads together to find a better path.
Thank you for your dedication to serving our state and for considering our perspectives on these critical issues.
Sincerely,
Mayor Nancy Backus, City of Auburn
Mayor Lynne Robinson, City of Bellevue
Mayor Carol Benson, City of Black Diamond
Mayor Jeff Wagner, City of Covington
Deputy Mayor Jim Ribail, City of Carnation
Mayor Jan Molinaro, City of Enumclaw
Mayor Jim Ferrell, City of Federal Way
Mayor Mary Lou Pauly, City of Issaquah
Mayor Kelli Curtis, City of Kirkland
Mayor Eric Zimmerman, City of Normandy Park
Mayor Angela Birney, City of Redmond
Mayor Armondo Pavone, City of Renton
Download the Multi City Comment Letter Regarding WA State Revenue Proposals (PDF)
The City of Auburn, like most communities, faces a number of issues that impact our community negatively. What is becoming very clear, we cannot treat each issue as separate. Instead, the City is committed to continue efforts that look at solving our challenges in a comprehensive manner. Our belief is that the following problems can only be solved with an interconnected strategy for success.
The 2025 Washington State Legislative session began Monday, January 13 and is expected to end Sunday, April 27 (105 days). The City of Auburn legislative delegation includes senators and representatives from three legislative districts - the 30th, 31st and 47th.
To effectively perform their job, legislators rely heavily on input from many different sources. Yet, much of what they actually decide depends on the views, interests and preferences of the citizens who elect them.
30th Members
- Rep. Jamila Taylor
- Rep. Kristine Reeves
- Sen. Claire Wilson
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31st Members
- Rep. Drew Stokesbary
- Rep. Joshua Penner
- Sen. Phil Fortunato
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47th Members
- Rep. Chris Stearns
- Rep. Debra Entenman
- Sen. Claudia Kauffman
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We strongly encourage Auburn residents to reach out to their representatives in Olympia and voice your concerns or compliments about the issues that matter most to you.
Contact information for Washington's Legislators
Please review the weekly list of bills that we are working on with your representatives in Olympia:
PUBLIC SAFETY
ISSUE: The City of Auburn supports the continued reforms to policing and community caretaking in our State and wishes to continue working in concert with legislators, police officers, our communities and others to continue this effort.
- REQUEST: Work with cities to make technical fixes those bills in which language is vague, conflicting or confusing.
ISSUE: Police agencies are currently in a staffing crisis. As we seek to fill vacated positions, we will need tools to ensure our departments are fully staffed and able to effectively respond to local public safety needs.
- REQUEST: Additional funding for officer wellness and DEI staffing within police agencies.
- REQUEST: Additional funding sources for officer recruitment and retention. Possibly through a councilmanic public safety sales tax, impact fees or direct funding from the state.
ISSUE: Impacts to towing companies from the Seattle v. Long decision force cities to expend more sums for towing services.
- REQUEST: Additional dedicated funding to cities for towing services, or an increase in funding to the State reimbursement account under RCW 46.53.010
ISSUE: Ongoing public safety issues related to illegal drug use.
- REQUEST: Restore drug free school zones and expand to community parks
- REQUEST: Additional funding to implement new law (Blake fix)
- REQUEST: Ongoing funding for therapeutic courts, recovery programs in jails and after treatment supports
REGULATORY & LAND USE
ISSUE: Affordable housing needs are deeper than 60% AMI–more like 50% or 40%. Washington State Housing Finance Commission programs are providing great support for projects that hit the 60% AMI mark.
- REQUEST: Create incentives to hit the deeper marks since that is where the greatest need exists.
- REQUEST: Future legislation related to affordable housing, missing middle housing or other land use laws must provide safe harbor for those cities that are creating or in the process of creating their Housing Action Plan (HAP) in line with previous legislative actions that included grant funding provided by the State Legislature.
ISSUE: Rehabilitate existing affordable housing. There are very few programs that help maintain older homes and multifamily complexes which results in one of two outcomes (1) older properties are maintained appropriately, but the investment is reflected in increasing rental costs, or (2) older properties are not maintained which helps keep rental costs down but at the sake of declining health and safety for tenants.
- REQUEST: Create dedicated funds to put towards the rehabilitation of single or multifamily units because it is far less expensive and environmentally sustainable to preserve existing housing stock instead of building new units and will ensure housing stock is readily available in the market.
ISSUE: The large number of regulatory processes are a hindrance to bringing affordable housing projects to fruition including SEPA, GMA, NPDES. State Environmental Policy Act (SEPA) is an outdated and overly burdensome process that adds time and money. Growth Management Act (GMA) and affordable housing objectives are at direct odds because the GMA limits supply which increases costs. National Pollutant Discharge Elimination System (NPDES) adds significant cost to development which is passed on to future owners or tenants.
- REQUEST: Allow procedural relief for any mandates that the State Legislature imparts upon cities. Work with cities to make it easier for us to update our local laws if or when it is in response to a State mandate rather than having to go through all of the obligations related to the planning commission, SEPA, public notice, etc.
ISSUE: The 2023 and 2024 legislative sessions introduced a high volume of planning and zoning changes centered around affordable housing. The City of Auburn supports efforts to address the current housing crisis in Washington, and in King County specifically, and want to part of the solution.
- REQUEST: Allow cities time to respond to the recent changes in planning and zoning laws from 2023 and 2024 and also to ensure the changes are accomplishing the desired results.
- REQUEST: Remedy conflicting or vague language in the multitude of planning and zoning bills passed in recent years. For example, the definition of a transit stop varies widely between bills.
PUBLIC WORKS, TRANSPORTATION, INFRASTRUCTURE
ISSUE: It is critical to protect all of the State funds that support local transportation projects. The cities cannot do this on their own given the amount of growth and commerce in the region. This includes maintained or increased funding for Transportation Improvement Board (TIB) and Freight Mobility Strategic Investment Board (FMSIB) along with state grant programs managed by the WSDOT for local agency projects.
- REQUEST: Fund a $2.5M Implementation Plan for the SR167 Master Plan that was completed in 2023. The Master Plan was an important first step in meeting the needs of the underserved communities along the SR167 corridor and the legislature needs to support the next step of creating the implementation plan so that the projects envisioned collaboratively in the Master Plan have the potential to be completed and provide the benefit to the region that was identified in the plan and is needed in the region.
- REQUEST: Increase the councilmanic ability to levy sales taxes for infrastructure.
- REQUEST: Make changes to appropriate RCWs to allow Municipalities to charge properties for street lighting. Current RCW 54.16.120 allows Utility Districts to charge properties for providing street lighting, but the law does not allow Municipalities to do this. Current revenues for general fund use cannot meet the needs and charging for street lighting would be an appropriate way to address a specific service being provided to residents and businesses within a jurisdiction.
- REQUEST: Retain or increase the Public Works Trust Fund amount. The legislature continues to raid this fund to fix structural budget issues and it must stop. The PWTF it is key to providing funding for local agency projects.
- REQUEST: Retain and increase the Drinking Water State Revolving Fund. This fund is key for local water purveyors to cost effectively fund needed infrastructure projects.
- REQUEST: Support allocating 1% of the existing aviation fuel tax to WSDOT’s Aviation account to fund airport projects. Current levels of funding cannot meet the growing need to maintain and improve this important infrastructure that provides a significant benefit to commerce and the State’s economy.
- REQUEST: Support the industry and federal efforts to develop a replacement fuel to 100 Low-Lead for aviation uses that works for all aircraft without adding additional time constraints for Washington State only that will only negatively impact these industries and users within Washington.
SOCIAL SERVICES
ISSUE: Cities throughout the state do not have the local resources available to adequately address homelessness, substance abuse disorders and untreated mental illness.
- REQUEST: Support greater funding for behavioral health programs and incentivize workers to pursue careers in behavioral health
- REQUEST: Support and fund programs that will alleviate the need for police response to quality-of-life issues such as mental distress or illness, substance abuse and persons experiencing homelessness
- REQUEST: Make any necessary changes to State laws that prohibit cities from hiring Mental Health Professionals or Designated Crisis Responders
- REQUEST: Provide clarification on the qualified use of Trueblood dollars to ensure the continuum of care in local communities
- REQUEST: Support the construction and operation of tiny home villages that provide permanent supportive housing using a community living concept.
ISSUE: South King County is facing a growing affordable housing crisis. As a member of the South King Housing and Homelessness Partners (SKHHP), we pool funds with other cities to support the production and preservation of affordable housing in South King County, but we need more help.
- REQUEST: In order to address this crisis, we need to fund all aspects of affordable housing, including:
- Homeownership for moderate income households and below
- Preservation of naturally occurring affordable housing (NOAH)
- Land acquisition to secure permanent affordability
- Permanent supportive housing (PSH)
- Infrastructure around affordable housing developments
- Workforce housing
PARKS AND OPEN SPACES
ISSUE: Help cities protect and maintain parks and open spaces
- REQUEST: Maintain funding for the Washington Recreation & Conservation Office and Land/Water Conservation Fund so residents have increased access to existing and new public spaces
- REQUEST: Support Washington State Historical Society’s (WSHS) capital budget request and the Heritage Capital Projects in the 2025-2027 funding biennium which includes the transformation of Auburn’s Historic Post office building into an Arts & Culture Center
- REQUEST: Support Recreation and Conservation Office (RCO) request for municipal parks deferred maintenance grant funding program in the 2025-27 Operating Budget
BUDGET & FINANCE
ISSUE: The arbitrary 1% property tax cap is regressive and hinders growth in Washington state. The City of Auburn supports a commonsense reform to this cap.
- REQUEST: Revise the cap by tying it to inflation and population growth with a limit of 3%
ISSUE: The leasehold excise tax can be interpreted in many ways according to the Department of Revenue and causes confusion within local jurisdictions.
- REQUEST: Provide greater clarification on what is considered a benefit and who the beneficiary is to ensure equitable application of the law