SEATTLE — Some people in Seattle are concerned about a new proposed fee for app-based delivery companies that operate in Seattle. They worry the fee will end up hurting consumers and small businesses.
“Every time you put either a fee, which is a sort of a hidden tax or a tax, somebody ends up paying for it. There is no free lunch in this. Most of the time, those are the users,” said Marcos Wanless, the Seattle Latino Metropolitan Chamber of Commerce president.
The Seattle City Council has proposed an ordinance adding a $0.10 fee to every app-based delivery order, except for groceries. The fee is being charged to the app-based delivery companies, but Wanless believes this will result in higher costs for consumers and small businesses.
“Making business in Seattle is really difficult as it is, so it doesn't need to be more expensive. It should be the opposite,” said Wanless.
These fees will generate an estimated $2.1 million per year. Councilmember Lisa Herbold is the bill’s sponsor and said in a meeting Wednesday that funding generated from these fees will go to the Office of Labor Standards and will be used to uphold new laws passed that give protections to app-based workers.
“These funds are necessary for us to enforce the legislation,” said Herbold at a committee meeting on Wednesday.
Some of the new app-based worker protections passed this year in Seattle include requiring paid sick time and implementing a minimum wage.
Wanless said the funding to ensure these laws are upheld should not come in the form of fees or taxes and should be funded by the city or state.
“There are millions of dollars at play here. So, how are they being administered? Obviously, and apparently, not in a good way,” said Wanless.
A committee approved the legislation on Wednesday, and the full city council will vote on the legislation on Tuesday, Nov. 21.
If passed, the law will go into effect in January 2025.