Mayor Nancy Backus of Auburn and a group of Eastside and South King County mayors on Friday urged Washington state legislators to reject two revenue items in the 2025–27 operating budget proposals: a payroll excise tax and an increased business & occupation (B&O) tax targeted at businesses with large payrolls.

"I am not a fan of leading by press conference. So the fact that we are here today with a press conference means that it’s a pretty significant issue," said Mayor Nancy Backus, opening the event at Auburn’s council chambers. "These taxes will make attracting jobs — great jobs — much harder, not only in Auburn, but in other cities across the state."

The mayors said the state proposal would apply an employer-level payroll excise and a higher B&O rate for businesses the state classifies as having more than $7,000,000 in payroll. Backus said those measures "will impact thousands of businesses across the state, including Auburn," and warned that higher labor costs would be passed on to consumers and could reduce hiring.

Bellevue Mayor Lynn Robinson said the Bellevue City Council voted unanimously this week to oppose the measures, and described an estimated statewide effect on 400 businesses, 39 of which are in Bellevue. "These proposed taxes pose a great danger to the prosperity of the city and the state," Robinson said, adding that Bellevue itself would be subject to the payroll tax as a large employer.

Redmond Mayor Angela Birney stressed the region’s dependence on technology jobs, saying Redmond is "the home of Microsoft" and that Washington’s tech sector supports additional local jobs and sales-tax revenue. "For every one tech job in my city and in the state, three more jobs are created for local businesses," Birney said.

Renton Mayor Armando Pavoni warned of wider economic knock-on effects, citing figures about the aerospace sector: "Boeing generates $725,000,000 in economic impact," he said, and noted that the aerospace industry employs more than 13,000 Washingtonians and generates about $4,600,000,000 in activity across the state according to figures he cited at the event. Pavoni said Renton projects a need for almost 32,000 new jobs over the next 20 years and that higher employer taxes would make recruiting and retaining employers harder.

Speakers argued that higher employer-level taxes could accelerate business relocations or reduced hiring and would reduce local revenues that fund public safety, human services and public works. Backus said Washington businesses already pay an average of more than $10,000 per employee in state and local taxes—"more than 23% above the national average"—and that the proposals would raise that average further.

The mayors said they are not presenting a single alternative tax proposal but are asking lawmakers to pursue other options to balance the budget, such as spending reductions or economic development strategies. Robinson said a dozen mayors signed a joint letter asking state legislators to find alternatives and to work with cities on solutions.

The press conference concluded with the mayors offering to be available to legislators and to provide additional information; they invited follow-up questions and said they would continue outreach to state leaders.