Seattle lost 30,000 jobs and $10 billion in office value since 2020 payroll tax, report says

A new report from the Downtown Seattle Association said Seattle has lost thousands of jobs and significant property value since the city imposed the JumpStart payroll tax in 2020.

The report compared Seattle with neighboring Bellevue, which has no comparable payroll tax or social housing tax. It found that Seattle's workforce and property values have shrunk while Bellevue's have held steady.

"Since 2020, what we have seen in downtown Seattle is not a 'jump start,' but instead, a slowdown," the report said. "Since being implemented, downtown Seattle has lost around 30,000 jobs. The office vacancy rate increased to 32% in the downtown core. And more than $10 billion in office value has been lost."

It added that Bellevue has gained jobs in its core, kept office vacancy lower, and maintained office building values. The report called the results a "stark tale of two cities and two tax environments just miles apart."

Bellevue saw a 7% increase in assessed value while Seattle office properties fell 48%, the report said. Seattle's office vacancy rate reached 32% compared with Bellevue's 24%.

Bellevue also has a smaller property tax millage rate than Seattle will have in 2026, the report said, making it more attractive to business owners.

"When comparing business tax burdens and broader tax trends in Seattle and Bellevue, the contrast is clear: Bellevue's more favorable tax climate has made it increasingly attractive to employers and investment relative to Seattle," the report concluded.

Seattle Mayor Katie Wilson defended the JumpStart tax in a statement to Fox News Digital. She said the tax helped the city recover from the worst economic effects of COVID and raised more revenue than projected.

"JumpStart revenue is the key reason why the city has been able to avoid the negative impacts of the deep budget cuts which would have otherwise been necessary over the past few years," Wilson said.