Kennewick council says ‘no’ to local income tax. But that wouldn’t stop it in the future

The Kennewick City Council passed a resolution 6-1 on Tuesday banning a city income tax, should that become legally possible.

Kennewick is the sixth city in Washington state to go on record opposing a local income tax, according to the Washington Policy Center.

The organization called on Pasco and Richland also to publicly oppose imposing a local income tax.

Some of the cities that have opposed an income tax are organized as charter cities and their votes carry the force of law.

Kennewick, like the majority of Washington cities, is not organized under a charter, but instead is authorized by the state to operate with a municipal code.

So its resolution opposing a city income tax does not carry the force of law and is not binding on future city councils.

Council members said it was important to show Kennewick residents where they stand on local income taxes.

Councilman Chuck Torrelli was the lone vote against the resolution.

He said it was a waste of staff time to research and write it when the council could have made clear it is opposed to an income tax with a discussion among council members that led to a consensus.

He called it a resolution “that addresses a nonexistent issue right now with a nonenforceable declaration that says we won’t do a thing that none of us want to do.”

The council has been relying on staff to write resolutions on topics, including the proposed Horse Heaven Wind Farm outside Kennewick city limits.

“We are moving further and further away from issues of potholes and pavements and more and more into politics,” he said.

Mayor Don Britain said that although none of the current council members would propose a local income tax, the resolution “sends a strong statement to the community.”

Councilman John Trumbo called the resolution a promise to voters and the people who pay taxes.

Kennewick city values

The resolution says that a local income tax would be “in direct conflict with the high value the city places on promoting economic development through the attraction and expansion of financially healthy, family-wage paying employers.”

“Small businesses are the backbone of our local, regional, state and national economy and it is imperative that the city not put unnecessary hurdles in the way of their success,” the resolution says.

According to Kennewick city staff, imposing a city income tax appears to be illegal. But the Washington state Supreme Court or the Washington State Legislature could determine that it is legal and permissible, it said.

The city of Seattle in 2017 enacted a graduated income tax on its high income tax, but it was invalidated in a court case brought by opponents of the tax. On appeal, the Division I Court of Appeals said the tax as selectively applied was unconstitutional.

But the Washington Policy Center said its ruling also invalidated the prohibition on local governments imposing a flat income tax.

Kennewick falls under the Division 3 Court of Appeals, so the Division I Court of Appeals does not apply, but its decision could be persuasive if the matter came before the Spokane-based Court of Appeals for the Tri-Cities area, said Kennewick attorney Lisa Beaton.

The Washington state Supreme Court denied the request for an appeal, which Jason Mercier of the Washington Policy Center said opened the door for local governments to impose a flat 1% income tax.