Prop 1A Wins Backers expect legal challenge to new Seattle Social Housing tax

In a significant electoral victory, Seattle voters approved a business tax intended to fund the city's new Social Housing program, garnering 69% support in the recent special election. The measure imposes a 5% tax on companies compensating employees over $1 million annually, with anticipated revenue of around $50 million per year earmarked for developing affordable housing. Advocates from the group House our Neighbors celebrated the outcome, asserting that it reflects a strong desire among residents for innovative solutions to the housing and homelessness crises. The tax option outperformed a competing proposal from the Seattle City Council, which sought to utilize existing funds and restrict housing assistance to the lowest-income residents. Backers of the measure are preparing for potential legal challenges from corporate interests, particularly from companies like Amazon, which opposed the tax.

This electoral result may complicate the reelection bid for Mayor Bruce Harrell, who supported the alternative proposal. The outcome underscores a progressive momentum in Seattle's political landscape, especially amid low voter turnout. As the city moves forward with these ambitious housing plans, the future of urban housing solutions remains a pivotal issue in the region.