Pierce County passes wage credits even after Seattle dumps head tax

In a 6-0 vote on Tuesday, the Pierce County Council passed an ordinance to attract more businesses, increase the number of jobs in unincorporated areas, grow economic activity and expand the tax base. The original idea was a response to Seattle’s head tax, which has since been repealed.

RELATED: Seattle head tax 101

The Family-Wage Jobs Credit Program gives businesses a one-time rebate of $275 per job created if it’s a new, permanent family-wage job with a salary of $52,197 or more. Employers have to be making payments for construction fees or permits and demonstrate they’ve created five or more of the new jobs.

The program will take effect Jan. 1, 2019 and sunsets on Dec. 31. 2025.

Despite questioning the ordinance during the council’s Rules and Operations Committee meeting on Monday, Councilmember Pam Roach approved. Originally, she asked if $220,000 –a ballpark figure — was really an appropriate use of funds.

Roach also pointed out the rebate was a direct reaction to Seattle’s head tax. She said she didn’t see the purpose any more.

“While I will be supporting this, I do think that we might want to give greater consideration to the fact that I believe it’s been budgeted something like $2.5 million,” Roach said. “Is that what?”

“The fiscal note is $220,000,” answered Hugh Taylor, the council’s Senior Legislative Analyst on Transportation.

“Oh, OK, I guess we’re not expecting too many to avail themselves of it,” Roach said. “But you know, that is two police officers. So I thought I would bring that up. A lot of ways to spend money.”

That answer was met with silence before passing the issue along to Councilmember Connie Ladenburg, who said she doesn’t think the ordinance goes far enough in providing livable wages.

Three people spoke during the public comment period, all of whom showed support.

“I know that in the scope of things, it may be not seem a like a lot of money to a lot of us here, but it sends the right message that Pierce County is open for business,” said Bill Riley, co-chair of the Red Tape Reduction Oversight Committee.

RELATED: Pierce County wage credits questioned after Seattle kills head tax

“This ordinance supports manufacturing jobs, which in turn supports our families,” said Meredith Neal, director of the Man Industrial Council for the South Sound.

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