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The Finance Base
The Money Desk · Blog
Re:

Seattle’s 2024 Capital-Gains Tax Proposal: Intended Help for Housing and Food Insecurity

Seattle’s proposed 2024 capital-gains tax would have directed revenue toward rental, down-payment, and food assistance. The tax and companion spending plan did not pass.
From TheFinanceBase Team3 min to read
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Seattle did not pass the proposed capital-gains tax or its companion spending plan. The 2024 proposal would have imposed a 2% excise tax on certain capital gains of individuals beginning January 1, 2026, with revenue intended for rental assistance, down-payment assistance, and food assistance. Those plans never became an enacted tax or established benefit programs.

What Seattle proposed—and what happened

Seattle City Council Bill 120908 proposed a 2% excise tax on certain gains individuals realized from sales or exchanges of long-term capital assets. The bill specified a proposed start date of January 1, 2026, and included definitions, asset exclusions, and allocation rules. These were terms of the introduced bill, not rules for a tax that took effect. The bill text and its legislative record identify the proposal and its provisions.

The Select Budget Committee voted not to pass CB 120908 on November 19, 2024, and the full City Council recorded it as not passed on November 21, 2024. Its companion spending-plan bill, CB 120909, also did not pass. As a result, Seattle did not establish this tax or authorize the described assistance through these bills. The companion bill’s record lists the proposed spending areas.

Which forms of assistance the plan named

CB 120909 identified three intended uses for revenue. It did not settle specific benefit amounts, eligibility rules, or service designs; those details, along with annual allocations, were left for later council or budget decisions.

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  • Rental assistance: Aid for rent-burdened households.
  • Down-payment assistance: Support for low-, moderate-, and workforce-income households seeking to buy a home.
  • Food assistance: Support for food-insecure households.

Because the companion bill failed, these categories describe what the proposal intended to fund—not benefits that residents could claim under the plan.

Why the sponsor proposed it

Councilmember Cathy Moore announced the proposal on November 8, 2024, describing it as a way to create progressive revenue for rental assistance, homeownership opportunities, and food assistance. She said: “My revenue proposal will keep people housed and out of the cycle of homelessness, build stable communities that expand our tax base, and address the hidden but fast-approaching hunger crisis in our city.” That was the sponsor’s stated goal, not evidence of an outcome; the bills did not pass. Moore’s announcement also described her interest in expanding homeownership opportunities for low- and moderate-income households.

Need figures cited in the proposed legislation

The bill’s recitals offered context for the proposed assistance, citing figures from other organizations and sources. They should be read as figures reproduced in the proposed legislation, not as independently verified current estimates.

  • Rent burden: The bill cited the U.S. Census Bureau’s 2023 American Community Survey for an estimate that 90,700 Seattle renter households—44%—were rent-burdened. The bill defined rent burden as housing costs exceeding 30% of household income and severe rent burden as costs exceeding 50%.
  • Rental-assistance waitlist: The bill cited United Way of King County for an estimate that about 5,800 Seattle residents were on a rental-assistance waitlist as of August 2024. It also attributed to United Way an estimate that $10 million would clear its backlog.
  • Food insecurity: The bill cited United Way of King County for estimates that 32% of Black adults and 26% of Latino adults experience food insecurity. The cited recital did not specify a publication year or methodology.

These figures helped explain the sponsor’s rationale, but they do not establish that the proposed tax would have reached a particular household or reduced hardship by a measurable amount. The bill text containing the recitals is available in the official legislative report.

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How this proposal relates to later city discussion

In a September 22, 2026 proposed-budget announcement, Mayor Katie Wilson said she remained interested in local progressive revenue options, including a local capital-gains tax, but that the state timeline for implementing such a tax meant it could not close the gap addressed in that budget proposal. That later statement is separate from CB 120908: it does not change the 2024 bill’s failed status or establish that another Seattle capital-gains tax passed. The mayor’s budget announcement provides that later context.

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