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Seattle Repeals “Amazon Tax” Amid Pressure from Local Businesses


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6/19/2018
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Seattle Repeals “Amazon Tax” Amid Pressure from Local Businesses

After mounting criticism of the four-week-old “head tax,” Seattle repealed the unpopular local law.  Seattle Mayor, Jenny Durkan issued a statement announcing the city’s decision to repeal the law.

Amazon temporarily stopped construction of an office building in downtown Seattle to send a clear message to lawmakers that continuing with the “head tax” would lead to Amazon’s relocation.

Along with Starbucks, another Seattle-based company, Amazon also started the “No Tax on Jobs” campaign in recent weeks, seeking a referendum vote in November to repeal the “head tax.”

With the prospect of losing its biggest taxpayer and fighting a protracted political battle, the Seattle City Council backed down.

Amazon has made other moves in recent weeks to head off a growing surge of interest in taxing online sales.  Recently, Amazon announced plans to block Australian shoppers from purchasing from Amazon (given their plans to impose a sales tax on electronically sold goods) and stated that Australian manufacturers selling internationally on its site will reciprocally be subject to sales tax on all outbound transactions.

https://www.cnbc.com/2018/06/12/seattle-repeals-tax-law-after-amazon-pressure.html

https://www.thestranger.com/slog/2018/06/13/27558399/did-the-head-tax-repeal-kill-the-world-famous-progressive-seattle

https://www.cnbc.com/2018/06/12/amazon-flexes-its-muscles-and-seattle-backs-down-on-a-business-tax.html



Category: Tax Law


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