During a recent Seattle City Council meeting, members discussed and voted on several key pieces of legislation, including two council bills related to property taxes and a proposed capital gains excise tax.

The council unanimously approved Council Bill 120-906 and Council Bill 120-907, which set the property tax amounts for the general fund and various levies. These ordinances are essential for determining the city's revenue collection for the upcoming fiscal year, constrained by state law to a maximum increase of 1% from the previous year. The council's approval ensures that the proposed tax revenues are included in the city’s budget.

The meeting also addressed Council Bill 12905, which pertains to the adoption of the city’s budget for 2025, including capital improvement programs and position modifications. After a thorough briefing from central staff, the council voted in favor of the bill, with two members abstaining due to concerns over the rapid pace of budget changes and the need for further understanding of the implications.

A significant topic of discussion was the introduction of a local capital gains excise tax through Council Bill 120-908. This proposed tax, set at 2%, would apply to long-term capital gains exceeding $262,000, with exemptions for real estate sales and retirement accounts. The estimated revenue from this tax could range from $16 million to $51 million annually, although officials noted a high degree of uncertainty due to the small number of taxpayers affected.

Council Member Moore, the bill's sponsor, emphasized the necessity of this tax as a means to address the city's budgetary needs and to provide funding for essential services such as rental assistance and food security programs. She reassured constituents that the tax would not impact the majority of residents, as it targets only a small number of high-income individuals.

The council also discussed the allocation of funds generated from the capital gains tax, with plans to earmark revenue for various social services. The meeting concluded with a vote on the resolution endorsing the budget modifications for 2026, which passed unanimously.

Overall, the council's actions reflect a proactive approach to managing the city's finances while addressing pressing social issues, despite some dissent regarding the timing and implications of new tax measures.