Downtown Seattle lost 30,000 jobs, billions in office value since 2020 payroll tax: new report finds

A new report from Downtown Seattle Association (DSA) claimed that Seattle lost thousands of jobs and significant property value in the years since implementing the "JumpStart" payroll tax in 2020.

Monday's report compared Seattle's status with its neighboring city, Bellevue, which has no comparable payroll tax or social housing tax, and found that while Seattle's workforce and property values have shrunk, Bellevue's has remained resilient.

"[S]ince 2020, what we have seen in downtown Seattle is not a 'jump start,' but instead, a slowdown," the report read. "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."

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Downtown Seattle Association (DSA) found significant differences between Seattle and Bellevue businesses due to their different tax policies. (Al Drago/Getty Images)

It continued, "Meanwhile, in Bellevue, dating back to 2020, the city has seen more jobs come to its core, lower office vacancy, and the stability of office building values. This provides a stark tale of two cities and two tax environments just miles apart."

The DSA reported that Bellevue experienced a 7% increase in assessed value compared to the 48% decrease seen in Seattle office properties. Though both cities have a sizable office vacancy rate since 2020, Seattle's rate is also significantly higher at 32% compared to Bellevue's 24%.

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In addition to having no payroll or social housing tax, Bellevue also has a smaller property tax millage rate compared to Seattle in 2026. This, the DSA report claimed, presented Bellevue as a more favorable environment for business owners.

Seattle's office value fell by 48% since 2019, according to the DSA report. (Reuters/Chris Helgren)

"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.

In a comment to Fox News Digital, Seattle Mayor Katie Wilson defended the city's JumpStart Payroll Expense tax as a bedrock for Seattle's resilience during hard economic times.

"Seattle's JumpStart Payroll Expense Tax is a key reason why the city was able to successfully bounce back from the worst economic impacts of COVID. Because of Seattle's ongoing economic strength, this tax on the highest salaries paid by the largest corporations has raised far more money over the past several years than originally projected," the mayor said.

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She continued, "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, and which would have been a massive drag on our local economy."

Seattle Mayor Katie Wilson defended the JumpStart Payroll Expense Tax after the DSA report was released. (David Ryder/Reuters)

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The JumpStart Payroll Expense Tax was first passed by the Seattle City Council in 2020 and implemented a tax on Seattle businesses earning $7 million or more on annual payrolls.