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A capital gains tax in Seattle is dead … for now.

On Thursday, the Seattle City Council voted down a proposal to impose a 2% tax on sales valued at more than $262,000 annually. It was the second time in a week the measure failed to gain a majority.

That leaves the idea on life support, but it may be revisited next year. Council members are already talking about a vote after Tanya Woo is replaced by Alexis Mercedes Rink next week. Mercedes Rinck defeated Woo in a special election on Nov. 5. Councilmember Tammy Morales said she hoped Mercedes Rinck would bring “a different balance” to the council when sworn in.

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“We will continue to have this conversation,” Councilmember Cathy Moore told . “It’s a conversation we can’t afford not to have.”

Moore expressed the need for additional revenue from affluent residents to balance Seattle’s budget and support a robust social safety net for those in need.

Seattle Mayor Bruce Harrell’s modified budget was approved by an 8-1 vote. The 2025 plan includes a general fund deficit and increasing spending on priorities such as public safety. Morales was the only dissenting vote, saying she could not support job cuts.

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Council President Sara Nelson supported the new budget, while Councilmember Tammy Morales was the sole dissenting vote, citing concerns over job and program cuts and the approach to closing the deficit.

Nelson said residents want to see effective use of existing revenue before any increases.

“I do think we need to build back public trust,” Nelson said.

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, and email him here.Ìý