HomeMy WebLinkAbout4849 Ordinance - Ban Local Income TaxOrdinance – Amending PMC, Creating Chapter 3.31 - 1
ORDINANCE NO. 4849
AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON,
CREATING A NEW CHAPTER 3.31, ENTITLED “LOCAL INCOME TAX,”
WITHIN TITLE 3, “REVENUE AND FINANCE” OF THE PASCO
MUNICIPAL CODE, TO OPPOSE A LOCAL INCOME TAX ON THE
RESIDENTS AND BUSINESSES OF THE CITY OF PASCO PROVIDING
FOR SEVERABILITY AND ESTABLISHNG AN EFFECTIVE DATE.
WHEREAS, the City of Pasco is committed to fostering a strong local economy through a stable,
predictable, competitive tax environment that encourages investment, entrepreneurship, family-wage
employment, and long-term economic growth; and
WHEREAS, Washington State has historically relied upon a tax system consisting primarily of sales,
property, business and occupation, and excise taxes rather than a broad-based personal income tax; and
WHEREAS, the Pasco City Council previously adopted Resolution No. 4150 in 2022 expressing its
opposition to the authorization and imposition of a local income tax, reaffirming the City's longstanding
commitment to maintaining a favorable business climate;
WHEREAS, during the 2026 Legislative Session, the Washington State Legislature enacted legislation
establishing a personal income tax on certain high-income individuals, representing a significant change in the
State's historic tax structure; and
WHEREAS, legislation has also been introduced in prior legislative sessions proposing to authorize
counties, cities, and towns to levy local personal income taxes under certain circumstances; and
WHEREAS, the City Council believes that expanding reliance on personal income taxes, whether
imposed by the State or authorized by local governments, may discourage private investment, business
expansion, workforce attraction, and long-term economic development within communities such as Pasco; and
WHEREAS, the City Council remains committed to policies that promote economic opportunities,
encourage business retention and expansion, support workforce development, and maintain a tax environment
that provides certainty for residents, employers, and local governments.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. That a new Chapter 3.31 entitled “Local Income Tax” of the Pasco Municipal Code shall
be and hereby is created and shall read as follows:
Chapter 3.31 Local
Income Tax
Sections:
3.31.010 Purpose.
Ordinance – Amending PMC, Creating Chapter 3.31 - 2
3.31.020 Local Income Tax Banned.
3.31.010 Purpose.
The imposition of a local income tax on the businesses and residents of the City of Pasco is a direct conflict
with the high value the City places on promoting economic development through the attraction and
expansion of financially healthy, family wage paying employers. Small businesses are the foundation of
our local, regional, state, and national economy and it is imperative that the City not put unnecessary
obstacles in the way of their success.
3.31.020 Local Income Tax Prohibited.
No local income tax shall be imposed upon the Residents or Businesses of the City of Pasco.
Section 2. This Ordinance shall take full force and effect five (5) days after approval, passage and
publication as required by law.
PASSED by the City Council of the City of Pasco, Washington, this 20th day of July, 2026.
Charles Grimm,
Mayor
ATTEST: APPROVED AS TO FORM:
Gabriela Sanchez, Ogden Murphy Wallace, PLLC
City Clerk City Attorney
Published: Sunday, July 26, 2026