Seattle mayor opposes new business tax

A proposed Seattle business tax that would boost spending to fight homelessness is facing pushback from Seattle’s mayor.

The tax would charge Seattle employers with a gross revenue of at least $5 million as much as $100 per employee.

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Mayor Tim Burgess told The Seattle Times he opposes the proposed tax because some businesses simply can’t afford to pay it.

Large companies such as Ben Bridge Jewelers and Bartell Drugs are against the tax, saying it’s the wrong approach to solving homelessness.

The Seattle Times reports the mayor wants the city to increase spending on homeless services by using money from short-term rentals from companies such as Airbnb. The city council may vote next month on whether to add fees to short-term rentals.

City council members behind the proposed homeless tax say they hope to raise $20 million.

The tax was proposed by council members Kirsten Harris-Talley and Mike O’Brien. They call it the H.O.M.E.S. proposal — Housing, Outreach and Mass-Entry Shelter.

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The two council members believe their tax will raise up to $24 million to go toward 24-hour shelters, encampments, and tiny homes. They also want to fund outreach, safe zones for people living in their vehicles, and rental assistance for people making less than 30 percent of the area’s median income.

“It is our large employers who have benefited most from Seattle’s economic boom,” said Harris-Talley. “As a result, big business is best positioned to help relieve some of the pressure created by rapid growth. We need a systematic fix to help address the resulting lack of affordable housing and dearth of places for people to go. This is a solution that protects the most vulnerable in our city and will help small businesses thrive.”

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