Seattle-based e-commerce giant Amazon.com Inc. is questioning its growth in the city following the city council's approval of a tax on Seattle's largest businesses, The Seattle Times reported May 14, citing a statement from Amazon Vice President Drew Herdener.
The council on May 14 passed a new tax on businesses grossing more than $20 million in annual revenue, as it seeks to raise $47 million annually for five years to fund homeless services.
All nine council members supported the ordinance, which would require Seattle's approximately 585 largest businesses to pay a tax of $275 per full-time employee working 1,920 hours per year, or about 14 cents per hour.
Amazon, the city's largest employer, reportedly is disappointed with the move, despite confirming that it has resumed construction planning for its new tower in the city, which it put on hold in early May, pending the outcome of the "head tax" vote.
The report said the online retailer is also weighing whether to sublease another large building following the announcement.
Seattle council President Bruce Harrell said the move is designed to address the housing affordability and homelessness crisis. The city declared a state of emergency on the homelessness crisis in November 2015, hoping to come up with additional funding to open more temporary shelters and to expand services and safe spaces for people sleeping on the streets.
