Seattle’s controversial tax on the wealthy failed its first legal test this week after a judge ruled the new ordinance violates state law – but the city isn’t backing down and vows to appeal, setting the stage for a Washington State Supreme Court showdown. King County Superior Court Judge John Ruhl ruled in a Wednesday that Seattle did not have the authority to impose the tax because state law prohibits tax on net income. City Attorney Pete Holmes called the decision “disappointing” but, in a joint statement with Seattle Mayor Tim Burgess, said their goal to eliminate the state’s “over-reliance...