Amazon suspended plans on a new 17-story office building in Seattle while the city council considered implementing a new tax that would charge 26 cents per employee hour for companies in the city that earn $20 million or more in annual sales.
The legislation, backed by at least four of the nine Seattle City Council members, would look to raise funds to address the local homelessness issue, the Seattle Times reported.
“I can confirm that pending the outcome of the head tax vote by City Council, Amazon has paused all construction planning on our Block 18 project in downtown Seattle and is evaluating options to sublease all space in our recently leased Rainer Square building,” said Drew Herdener, a vice president and spokesman for Amazon.
Amazon employs over 40,000 people in Seattle and has been planning on further expansion in the city. However, plans of expansion have been halted pending a vote on the new tax, which, if passed, would cost the tech giant more than $20 million annually.
The Seattle Metropolitan Chamber of Commerce and Downtown Seattle Association, who oppose the tax and would be affected by it, both insinuated the the tax would disincentivize businesses to hire more employees. The two entities claim this move would be a “tax on jobs.”
“The current reality on the streets of Seattle clearly shows the City Council’s approach to the biggest crisis facing our region has been inconsistent and ineffective,” the groups said.
