Council Budget Committee Considers Response to Council Member Sawant's Proposed Payroll Tax

Many thanks to our BOMA members who responded to our call to action on April 21, 2020 to let the Council know that now is the time to focus on Seattle’s economic recovery and not a new jobs tax.

Councilmembers Sawant and Morales have proposed a tax on payroll of 1.3% on businesses that have more than $7 Million in annual payroll.  While this is characterized as a tax on corporate business, and particularly aimed at Amazon, it would impact more than 800 businesses who provide 300,000 jobs in Seattle. It would also impact the businesses that depend on those jobs and the customers who buy their products and services.

In order to access funding immediately, a total of $200 million would be borrowed from: Low Income Housing Fund, Housing Incentive Fund, Families Education and Preschool Promise Levy Fund, Move Seattle Levy Fund, the Seattle Park District Fund, and the Library Levy Fund. That puts these important funds at risk right now, when they are desperately needed.

We expect that this or another proposal will continue to be considered by the Seattle City Council.  A payroll tax on business is not acceptable at any time, but especially now, when our economy is struggling.

BOMA’s Advocacy Team is actively engaged with our business partners to oppose this tax.