A failed effort last year to impose an employee head tax on Seattle businesses may be making a comeback.
The Seattle City Council in November dropped an effort to impose a $100 per full-time employee tax on businesses with taxable gross receipts of at least $5 million per year. Councilmember Mike O'Brien, who spearheaded the measure, said it could have raised $25 million for homeless and housing services.
More than 90 businesses opposed the tax and it was defeated 5-4.
Four months later, a special city task force believes a new version of the head tax could raise $25 million to $75 million per year for those programs.
The task force report looks at three competing options based on whether a company's gross revenue reaches $8 million or $10 million.
Both small and large businesses would face a per-employee charge. Businesses with more than 500 full-time employees would pay the most -- as much as $450 per worker.
But even businesses making at least $500,000 could face a single $200 per year fee.
It has again met with stern opposition, not only from big businesses but small ones as well. More than 300 small businesses sent a letter to the council, urging it to reconsider the head tax, and asking the council to consult with them about the issue.
"I'm dedicated to helping people in my community here, but the more expenses we have, the more taxes we have to pay, of course it impacts our ability to give in other ways," said Lisa Michaud, owner of Two Big Blondes Plus Size Consignment.
The task force says it supports a tax that can be imposed on January 1, 2019.
