The new proposal comes as the City of Seattle is hashing out its 2025-2026 budget, with Mayor Bruce Harrell calling for $8.3 billion in spending. That includes a $270 million hole in the city’s general fund, which helps pay for public safety, administration, education and human services, arts and culture, and other programs.

Seattle officials worry that implementing a local capital gains tax would coax wealthy residents to change their home addresses. Seattle City Councilmember Cathy Moore is proposing a local 2% capital gains excise tax that would be applicable to non-retirement financial gains over $250,

Councilmember Cathy Moore said her Seattle capital gains tax would be "identical" to Washington state's, except with a 2% rate, rather than 7%.

Washington State voters showed broad support for the State’s Capital Gains tax thi. But the idea for a much smaller city version in Seattle is struggling to stay alive. A crucial vote is scheduled for Thursday.

Seattle City Councilmember Cathy Moore is proposing a 2% capital gains excise tax modeled on the Washington state tax that on Tuesday survived a ballot measure to nix it.

After WA voters rejected a measure to repeal the statewide capital gains tax, a Seattle City Council member plans to introduce a similar tax.

On Tuesday, Seattle City Councilmember Cathy Moore plans to present the city council with a new idea: A 2% capital gains tax. It’s a baby version of the 7% capital gains tax voters just upheld for Washington State.

One is Initiative No. 2109. This ballot item will determine how Washington State taxes capital gains over $250,000 going forward. This initiative, if passed, will repeal the capital gains tax under the following parameters. If it fails, the tax will remain in place.

Members of the Seattle City Council’s Select Budget Committee on Wednesday debated a newly proposed 2% capital gains tax to support food and housing programs for the city’s low- and middle-income residents.