Seattle voters will be deciding on two competing propositions as well as two school district levy renewals on Feb. 11.
The competing measures are Propositions 1A and 1B. Proposition 1A (previously Initiative 137) is a citizen-initiated measure, and Proposition 1B is an alternative measure referred to the ballot by the Seattle City Council.
Voters will first decide on Question 1, which asks whether to use revenue from taxes on payroll expenses in order to fund the development and maintenance of social housing in Seattle. Voters will then decide on Question 2, which asks voters to choose between Proposition 1A (Initiative 137) and Proposition 1B (City Ordinance 127101).
Proposition 1A would establish a new payroll tax of 5% on annual compensation above $1 million paid in Seattle to any employee with revenue dedicated to fund social housing. Proposition 1B would use existing payroll expense tax revenues to allocate $10 million from the next five annual city budgets.
Question 1 requires a simple majority vote for approval, while Question 2 requires the highest amount of votes for approval.
Let’s Build Social Housing (Yes on Prop 1A), a committee supported by House Our Neighbors, is leading the campaign in support of Proposal 1A. Let’s Build Social Housing said, “Employers who purchase the labor of highly compensated workers above a $1 million in total compensation will pay a 5% marginal tax. Employers pay the social housing payroll tax, not employees. The money from the excess compensation tax can be used to construct and acquire buildings for social housing, fund operations and maintenance of buildings, and staff up the Seattle Social Housing Developer (SSHD). This initiative will create an annual, dedicated revenue stream for social housing in Seattle. This revenue stream can then be bonded on to accelerate production of social housing.”
Seattle Metropolitan Chamber of Commerce and Councilmembers Maritza Rivera, Bob Kettle, Cathy Moore, and Tanya Woo support Proposition 1B. Councilmember Maritza Rivera said, “[Prop 1B] balances the need for innovation with the need for accountability. It also allows the Seattle Social Housing Developer, a new public development authority, the opportunity to show what they can build here in Seattle. But it won’t give a blank check to another new agency that does not have the experience creating housing.”
On June 24, 2024, House Our Neighbors submitted 37,819 signatures to Seattle’s Office of the City Clerk to get Proposition 1A on the ballot. The initiative cleared the requirement of 26,521 valid signatures. Councilmembers voted 6-1 to place the alternative ballot measure, Proposition 1B, on the ballot with Councilmember Tammy Morales voting “no.”
Seattle Public Schools voters will also be deciding on two levy renewals. Proposition 1 would renew the educational programs and operations levy for three years generating a total of $747 million. Proposition 2 would renew the capital levy for six years generating a total of $1.8 billion. Both were last renewed in 2022 with each receiving over 75% of the vote.