Recent business and sports developments have renewed debate over whether Washington’s changing tax environment could affect its ability to attract and retain employers, executives and high-income workers. However, the distinction between confirmed relocations and potential future impacts is important.
In October, Columbia Banking System announced plans to open a 13,500-square-foot executive office near Scottsdale, Arizona, and relocate most executive roles there. CEO Clint Stein attributed the decision to Washington tax increases, which the company estimates will add approximately $8 million to its annual costs. Stein has also relocated to Arizona. The company has said its headquarters will remain in the Pacific Northwest for now, and Washington remains its largest market by branch count, with 109 locations. The reported move involves executive functions, not a confirmed departure of the bank’s entire Washington operation.
The state’s new 9.9% income tax on Washington taxable income above $1 million, scheduled to take effect in January 2028, has also prompted discussion about professional sports. Seattle Seahawks General Manager John Schneider said the change could make recruiting free agents more difficult because the team can no longer promote Washington’s lack of an individual income tax as a financial advantage. However, a Seattle University sports and marketing expert said the tax is unlikely to drive athletes away on its own. Team culture, contract value, and competitive opportunities also influence player decisions.
The potential return of the NBA to Seattle has generated similar questions, but there is no evidence that the tax has caused the league to abandon Seattle expansion plans. In fact, the NBA’s board of governors voted to explore expansion in Seattle and Las Vegas after the tax passed the Legislature.
Advocacy website LeftWashington.org tracks businesses it says have left the state, contributing to the broader debate over competitiveness. Such lists provide context, but individual business decisions require scrutiny to determine their reasons and economic effects.
For employers and retailers, the broader question is how tax policy affects operating costs, executive location decisions, workforce investment, and Washington’s long-term business climate.
