Protect the Payroll Expense Tax!

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TAKE ACTION: Protect housing's share of the Payroll Expense Tax!

What’s happening

Mayor Wilson has released her proposed 2027-2028 city budget. While the proposed budget invests in affordable housing and equitable development, housing's share of funding in the Payroll Expense Tax has stayed flat, even as our city's need has grown.

Why this matters

The Payroll Expense Tax (PET) was created to build affordable homes and keep communities rooted in place. In 2025, City housing investments created and preserved more than 2,100 affordable homes, making PET possible. Over ten years, the Equitable Development Initiative has invested more than $100 million so communities at risk of displacement can stay and thrive.

However, this budget puts just over 30% into housing, and continues to use PET as a major source to balance the general fund. Additionally, the budget sweeps $65 million in one-time PET funds that were set aside for affordable housing projects. Those projects still have to be paid for, so future housing budgets will have less for new homes.

What we're asking for

We thank Mayor Wilson for a budget that invests in affordable housing and equitable development in a difficult year, but more can be done. Join us in asking the City Coiuncil to:

Keep PET dedicated to housing. Treat 30% as a floor, never a target, and pass a resolution reinstating the City's 62% commitment for future budget cycles.
Restore housing funding. Bring the Office of Housing's PET funding back to at least the 2026 level, and direct any upside in the October 16 forecast to affordable housing and equitable development.
Protect EDI. Keep the Mayor's proposed funding for the Equitable Development Initiative, and increase it if possible.

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Seattle City Council

Subject: Protect Housing Funding in the Payroll Expense Tax

Message:

Dear Councilmember, As a Seattle resident who cares deeply about affordable housing, I'm writing to urge you to protect housing's share of the Payroll Expense Tax in the proposed budget. The Payroll Expense Tax was created to build affordable homes and keep communities rooted in place. However, housing's share of the Payroll Expense Tax is slipping—with revenue from the Tax continuing to grow while the amount allocated to housing stays flat. This proposed budget also sweeps $65 million in one-time Payroll Expense Tax funds that were set aside for affordable housing projects. Those projects still have to be paid for, which leaves less for new homes. I'm asking the Council to keep the Payroll Expense Tax dedicated to affordable housing; to consider 30% as a floor, and pass a resolution to reinstate the City's original 62% commitment in future budgets; and to restore housing funding to at least last year's level, and protect funding for the Equitable Development Initiative. Our city is in a housing affordability crisis, and we simply cannot afford to underfund, or redirect funding from, housing. We must build more, for the sake of our neighbors, communities, and city. Please protect Payroll Expense Tax housing funding in the proposed city budget.

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TAKE ACTION: Protect housing's share of the Payroll Expense Tax!

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