Chicago Sun-Times

Seattle backpedali­ng after Amazon fights ‘ head tax’

- BY PHUONG LE

SEATTLE — Seattle city leaders said Monday they will work to repeal a tax on large businesses just one month after unanimousl­y approving the measure to help pay for affordable housing and homeless services.

Mayor Jenny Durkan and seven of nine councilmem­bers said in a joint statement that “it is clear that the ordinance will lead to a prolonged, expensive political fight over the next five months that will do nothing to tackle our urgent housing and homelessne­ss crisis.”

“We heard you,” they said, adding that the City Council would consider legislatio­n this week. A special meeting has been scheduled for Tuesday. The measure would need five votes to pass.

The announceme­nt of a pending repeal comes just days before Thursday’s deadline for the campaign working to overturn the tax to turn in signatures to qualify the referendum for the November ballot.

The City Council last month unanimousl­y passed a compromise plan that taxes businesses making at least $ 20 million in gross revenues about $ 275 per full- time worker each year. The so- called “head tax” would have raised roughly $ 48 million a year for housing and homeless services.

Amazon and other businesses had sharply criticized the tax, and the online retail giant even temporaril­y halted constructi­on planning on a new high- rise building near its Seattle headquarte­rs ahead of the vote.

Councilmem­ber Teresa Mosqueda, one of four sponsors of the original tax proposal, said Monday she could not back repealing the tax without “a replacemen­t strategy to house and shelter our neighbors experienci­ng homelessne­ss.”

“We cannot wait months or until next year for another proposal or process while people are sleeping in our parks and on our streets,” she said in a statement.

John Murray, a spokesman with the No Tax on Jobs campaign, said Monday that the coalition appreciate­s that the “Seattle City Council has heard the voices of the people loud and clear and are now reconsider­ing this ill- conceived tax.”

 ?? ELAINETHOM­PSON/ AP ?? Paid signature gatherer John Ellard ( right) gives thumbs- up on May 24 as two men stop to sign petitions to put on the November ballot a referendum on Seattle's “head tax.”
ELAINETHOM­PSON/ AP Paid signature gatherer John Ellard ( right) gives thumbs- up on May 24 as two men stop to sign petitions to put on the November ballot a referendum on Seattle's “head tax.”

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