Amazon, Microsoft support business tax to address housing

SEATTLE — Major Seattle-area companies said they are willing to be taxed to help address regional challenges, such as affordable housing, mental health, and public safety.

A measure that would allow King County to tax large businesses to raise money to build affordable housing to fight the region’s homelessness crisis was introduced in the Legislature last week.

KUOW reports the companies -- including Amazon, Microsoft, Starbucks, and Alaska Airlines – signed a statement released Tuesday, saying: "We think the most high impact way to contribute to meet those needs is in the form of a new business tax."

The statement comes as state lawmakers consider a bill that would allow King County to tax large businesses with high earners to help address homelessness in the region. ]

House Bill 2907 (HB2907) would impose an annual payroll expense levy on companies and would let the county increase that rate for highly paid workers. HB 2907 would allow King County resources to fund four affordable housing, investments to tackle homelessness, support for behavioral health and substance use disorder and public safety and diversion solutions.

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King County Executive Dow Constantine and Seattle Mayor Jenny A. Durkan said officials are working every day to tackle homelessness and add more affordable housing options in the city. The two released the following joint statement Wednesday regarding HB2907:

We thank legislators in Olympia for recognizing that regional need and for bringing forward a progressive new funding tool for King County – and we encourage them to act with urgency," the two said in a joint statement. "We also appreciate this opportunity for productive discussions with legislators, community members, philanthropy, service providers, businesses, and labor organizations. We believe that, working together, we can implement proven strategies that allow everyone in our community to thrive.

Because of our regressive tax code, King County has limited revenue options. This crisis demands more tools for the region outside of property and sales taxes. Many of the region’s largest businesses, with deep roots in our community, want to participate in solutions, and want to do so with a comprehensive, countywide approach to homelessness, housing, behavioral health, and public safety. We agree, and this bill is a strong step in that direction.

We know more input and ideas will help make this bill better, but we cannot miss this moment to act.

The proposed law comes after the Seattle City Council in 2018 repealed a similar tax on large companies it passed that was designed to bring in money to address homelessness issues.

King County is home to major tech companies like Amazon and Microsoft with many employees making more than $100,000 annually. Expedia is one of the companies that could be affected if this tax proposal is passed, but Expedia Group chief legal officer Bob Dzielak said the company stands behind the measure.