A one-bedroom unit in Heartwood Apartments, a Seattle housing development targeting lower income renters. (GeekWire Photo /) A Seattle City

A capital gains tax in Seattle is dead for now after the city council voted it down for the second time in a week.

The Seattle City Council has rejected a proposed local capital gains tax, but the bill could be brought back as soon as early next year.

Seattle council members approved a city budget, nixed spending restrictions on the JumpStart tax and defeated a capital gains tax proposal.

The Seattle City Council has approved the continuing use of its payroll tax toward its general fund despite opposition from residents and local organizations. The approved legislation was originally proposed by Seattle Mayor Bruce Harrell.

Seattle will use money originally earmarked for affordable housing to plug a $250 million hole in the city’s budget.

Seattle will balance its budget in 2025 and may do so for years to come with help from its JumpStart payroll tax, the City Council is deciding this week.

A proposed capital gains tax in Seattle failed to get a "pass" recommendation out of the Select Budget Committee, with Council Bill 120908 garnering a 4-4 vote, including one abstention. Sue Romero, communications strategist with the Seattle City Council explained that "although it’s unlikely to pass given today’s vote tally,

Budget deliberations found "there's not a lot to cut" in next year's budget. "So that does leave us at the point where we do we need additional revenue," the sponsor of the bill said.