Smaller Seattle head tax, with end date, floated by city council
The deal negotiated between a council member and the mayor may have the support needed to pass and avoid a veto.
The Seattle City Council appears to have a compromise on the controversial employee head tax proposal, just hours before the council is set to vote. The tax is aimed at helping the city's affordable housing and homeless crisis.
Councilmember Lorena Gonzalez says she has negotiated with Mayor Jenny Durkan and her staff on a new amendment. Gonzalez says the new terms with be $275 a head to raise roughly $50 million a year, with a sunset clause January 1, 2024.
It would only impact businesses with over $20 million a year in gross revenue.
"Mayor Durkan has been working around the clock with Councilmembers, businesses and workers to forge a path forward that protects our economy and family-wage jobs while making meaningful investments in affordable housing and homelessness services. She is encouraged by the collaboration with Councilmembers and looks forward to Council's vote this afternoon," said Stephanie Formas, spokesperson for Durkan.
It came after a tense Friday committee vote where three amendments were rejected, and the council eventually approved a proposal to tax businesses at $500 a head to raise $75 million dollars a year with no sunset.
That vote was only 5-4, and Durkan has threatened a veto under those terms.
Amazon has paused construction on two projects and says it is waiting for an outcome of the discussions.
It appears this latest amendment may have support from the four "no" votes and, perhaps, Durkan. Councilmembers Sally Bagshaw and Debora Juarez praised the work and collegial negotiations.
The spending plan for the money is still unclear and is expected to be released at the 2 p.m. council meeting when the vote is scheduled to take place.
The original bill was sponsored by four council members: Gonzalez, Teresa Mosqueda, Lisa Herbold, and Mike O'Brien. Councilmember Kshama Sawant has railed against Amazon and called for a much bigger tax.
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