Union Gap became the fifth city in Washington state to pass a ban on local income taxes. 

On Aug. 9, the city of roughly 6,100 residents just south of Yakima, approved the ban. Yakima saw its own city council send a charter amendment banning local income tax measures to voters in the November general election ballot. 

The Morning Wire: Keeping you informed on politics, policies, and personalities of Washington State.

The cities are part of a small wave of mostly central and eastern Washington cities who are voicing opposition to local income tax. The cities of Spokane, Spokane Valley, Granger and Battle Ground have also approved bans. Battle Ground also passed their ban this summer, while the other three cities approved theirs in 2019. 

The moves were supported by the Washington Policy Center, a conservative think tank, while other political commentators have said the focus on local income tax bans in relatively right-leaning cities are a political red herring.
At the Yakima city council meeting on Aug. 2., Rep. Chris Corry (R-14th) voiced his support for a local income tax ban, noting that Washington state residents have voted down income taxes in the past.

“Washington state citizens have routinely and repeatedly voted against an income tax in the state, it’s actually one of our great competitive advantages.”

The capital gains tax charging 7% on earnings from the sale of long-term capital assets of more than $250,000 was approved by the state legislature this year, and is navigating its way through a series of legal challenges in the state Supreme Court. The funding from the capital gains tax will go towards the education legacy trust account and common school construction account. If it passes legal challenges, the tax will take effect on Jan. 1, 2022.

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