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Seattle Repeals “Amazon Tax” Amid Pressure from Local Businesses

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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After mounting criticism of the four-week-old “head tax,” Seattle repealed the unpopular local law.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.




Category: Tax

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