The Seattle City Council has made a strong statement, voting unanimously to tax companies based in Seattle that pull in more than $20 million a year. While this was not the tax originally proposed, it’s still a step, and a statement of resolve by elected officials.
In the end, the approved employee hours tax, or head tax, was a compromise between members of the council and Seattle Mayor Jenny Durkan.
The approved bill calls for a $275 tax per employee, per year on companies grossing more than $20 million in Seattle. That is down from the original bill, which called for a $500 per employee head tax. On Friday, Mayor Durkan signaled she would veto the original bill.
The approved legislation also included a sunset clause after five years, with renewal requiring a council vote in 2023.
This comes after Amazon tried bullying the city by abruptly halting a big building project. It was a bully move and while it spooked Seattle Mayor Durkan enough to push for a lower tax, it did not stop the city council from voting to force Amazon and other companies like it to put their money where it should go: back into the communities that allow people like Jeff Bezos to play with spaceships.
According to city officials, they hope that this tax will bring in around $48 million a year to be used for more affordable housing, as well as homeless services.