History of the Amazon Tax

AmazonThe Amazon tax is one of the ongoing issues that the companies and the local government have been dealing for the past few years. In this tax, the big employers are required to pay a certain amount of money as levy tax for every employee in their payroll. This is huge in terms of overhead and capital investment. And it has truly been negatively affecting consumers and employees as well. You can shop online and find fewer voucher codes and other offers & coupons.

First head tax issued

The first head tax was proposed by Mayor Greg Nickels in 2006. The term head tax was coined by the local media. This law was going to require the companies to pay $25 per employee that they have. And the goal of this tax was to improve the sidewalks and do the regular maintenance of the streets. Not all the businesses are included in the tax. Those that used carpooling, bicycles, and commuting are all exempted. This is because the levy tax was also under the umbrella of the “Bridging the Gap” transportation levy. This tax was approved in 2007 by voters.

The tax levy grew unpopular among the new council members. They asked to repeal the tax since they want to support the businesses in the area. This happened in 2009. If you will remember, it was also the series of years when the world underwent a recession. At first, Nickels supported the repeal. But later, he voted against it. Either way, it would be a win for the repeal as the majority won on the vote, 8-1 against the head tax.


Next head tax proposal

It was in 2014 when the head tax proposal was revived. This was to support the King County Metro. The company was supposed to reduce bus service hours because of decreasing revenue. The proposal was an $18 levy tax per employee. This proposal was rejected both by the council and by businesses. Instead of opting to create a head tax, they went to create the vehicle registration tax. Another smaller tax was proposed in 2016 which was filed by the Service Employees International Union, but it did not reach the ballot.