Will WA Supreme Court Ruling Put Income Tax At Risk? + Seattle Jobs Report Shows Major Job Loss

The Washington Supreme Court's decision striking down Initiative 2066 is raising new questions about how the state's single-subject rule could affect other Washington laws and future ballot initiatives, while new employment data shows Seattle lost more than 18,000 jobs between 2024 and 2025. The Washington Supreme Court ruled 6-3 on September 17 that Initiative 2066 violated the single-subject requirement of Article II, Section 19 of the Washington Constitution. I-2066 was approved by Washington voters in 2024 and addressed natural gas access, electrification, utilities, building regulations and other energy policies. The Supreme Court concluded the initiative contained multiple constitutionally distinct subjects that lacked sufficient rational unity. Because the provisions could not be severed, the court declared I-2066 unconstitutional in its entirety. The ruling is now prompting debate over what the court's reasoning could mean for other Washington laws. Building Industry Association of Washington Vice President Greg Lane argues the single-subject standard must also be applied consistently to legislation passed by the Washington Legislature and says the ruling could create new challenges for lawmakers. The Washington Policy Center has separately argued that Senate Bill 6346, which created Washington's new individual income tax while also making changes involving other taxes and tax-relief programs, could face questions under the court's single-subject reasoning. The Washington Supreme Court has not ruled that SB 6346 is unconstitutional. Washington voters will also decide Initiative 645 on November 3. I-645 would repeal provisions establishing Washington's new individual income tax while leaving other tax-relief provisions in place. Washington Republican Party Chair Jim Walsh has raised concerns about how the Supreme Court could treat future challenges to voter initiatives following its I-2066 decision. Those claims represent the arguments of critics of the court's decision and do not establish how the Supreme Court would rule in a future case involving Washington's income tax or Initiative 645. Also in today's report, Seattle lost more than 18,000 jobs between 2024 and 2025, according to new analysis from the Downtown Seattle Association. Approximately 13,000 of those losses were concentrated in downtown Seattle, meaning roughly 70% of the city's employment decline occurred in the downtown core. During the same period, Bellevue added 5,375 jobs and Tacoma added 662. The Downtown Seattle Association says recent Seattle job losses have affected industries including technology, construction and professional services. DSA is calling for renewed attention to Seattle's economic competitiveness as Mayor Katie Wilson's proposed budget moves through the Seattle City Council. The organization says its comparisons with other cities do not establish that differences in state or local policy caused Seattle's employment decline. Today's Washington coverage examines Initiative 2066, the Washington Supreme Court, the single-subject rule, Initiative 645, Washington's new income tax, the state Legislature, Seattle job losses, downtown Seattle employment, Bellevue job growth and Seattle's business climate. Follow The Center Square for continuing coverage of Washington state government, the Washington Supreme Court, taxes, elections, Seattle business and the Washington economy. Want the next important update by text? Get the Washington state government and policy developments worth your attention sent straight to your phone. Text TCSWA to 206-944-3016 or sign up here: https://joinsubtext.com/c/thecentersquarewa Msg & data rates may apply. #WashingtonState #WashingtonSupremeCourt #Initiative2066 #I2066 #Initiative645 #IncomeTax #Seattle #SeattleJobs #DowntownSeattle #SeattleEconomy #WashingtonPolitics #WashingtonNews #TheCenterSquare #WashingtonInFocus