City of Leavenworth passes resolution to oppose Climate Change Act repeal, leaves resolution to oppose Capital Gains Tax on table

LEAVENWORTH—The Leavenworth City Council passed a resolution to oppose Initiative 2117 (I-2117), which would repeal the Climate Change Act, during its Oct. 8 meeting. The council chose not to put a similar resolution opposing the repeal of the capital gains tax (I-2109) up for a vote. 

I-2117 would prohibit state agencies from implementing any type of carbon tax credit trading, including the Climate Commitment Act (CCA). It would repeal the cap-and-invest program created by the CCA, designed to help the state meet its goal of reducing carbon emissions by 95% by 2050, while investing in clean transportation, environmental justice, and addressing health equity. 

Those in favor of the initiative argue the act created a larger increase in gas prices than was originally promised, putting an inordinate burden on working families without effectively reducing emissions.

“This came out of a meeting I went to with the [Association of Washington Cities], and a number of cities are concerned about impacts to the state budget, which also impacts city budgets,” said Mayor Carl Florea.

Washington cities such as Kenmore, Burien, Lake Forest Park, Seattle, Tumwater, Vancouver, and Redmond as well as Port of Seattle and King County have passed resolutions opposing the repeal. Seventeen out of 29 tribes across the state have also officially opposed the initiative. 

Cities and towns are eligible for grants and loans funded by CCA revenues, for local projects and programs such as transportation improvements. 

According to the Washington Office of Financial Management’s fiscal impact statement, the projected revenue loss would be $758.1 million in state fiscal year 2025, leading to cuts in local funding opportunities. For fiscal years 2025 to 2029, the projected reduction in revenue is $3.9 billion.

“As a city council and a mountain town…I think we definitely have a role to play in knowing what this carbon tax credit does, what it does for us, to lose this would be a significant loss for the city and for our community, so I think well worth a discussion,” said City Councilmember Zeke Reister.

Community member Ron Duncan provided public comment, advising the council that the decision should be left to the public. City Councilmember Clint Strand agreed, fearing that it would open a “Pandora’s box” of endorsing positions.

“I'm equally uncomfortable with this resolution in front of us as this next one that will be coming before us, because I think this goes beyond the bounds of the city limits and our responsibilities as city council members,” said City Councilmember Anne Hessburg.

However, due to the local implications of the resolution, the City Council ultimately passed the resolution, with Hessburg opposed.

The City Council had a similar proposed resolution to oppose I-2109, which would repeal the state’s capital gains tax. The capital gains tax is annually imposed on the sale or exchange of Washington capital assets when an individual has an adjusted annual Washington capital gain in excess of $250,000.

According to the House of Representatives summary on I-2109, the first $500 million in taxes, penalties, and interest collected from the state capital gains tax each fiscal year is deposited into the Education Legacy Trust Account (ELTA), which is used to fund kindergarten through 12th grade and higher education purposes, as well as child care and early learning programs. Remaining proceeds are deposited into the Common School Construction account. The amount deposited in the ELTA is adjusted annually for inflation.

Those in favor of the repeal argue that the tax is a step towards state income tax, and makes the state less competitive. 

“I would suggest that we let this one die with no motion…I voted for the last resolution because if the repeal passed, it would have material and definite impacts for the City of Leavenworth and our residents… If this dies without a motion, then we don't have to weigh in on it, which, frankly, I'm not sure it's our place to do in this particular instance,” said Strand.

Leavenworth City Council agreed on the significance of discussing the initiative, but ultimately left the motion on the table, reasoning that the initiative wouldn’t have a direct impact on the city’s function.

Both initiatives were sponsored by the political action committee Let’s Go Washington, founded by hedge fund manager Brian Heywood, and filed by State Representative Jim Walsh.

Taylor Caldwell: 509-433-7276 or taylor@ward.media