Seattle Mayor Jenny Durkan’s week of activity marking the end of her first year in office included a Friday executive order she says was shaped by her Small Business Advisory Council to help small businesses get relief from city taxes and fees and efforts to make it easier for entrepreneurs to navigate the city’s bureaucracy.
The executive order includes three elements:
- Direct the City Budget Office to study ways to reduce the impact of taxes and fees on small businesses, explore a possible holiday from the B&O tax, and look for others ways to support small business employees; and, Continue reading
Attorney General Bob Ferguson and investigators from the Washington State Department of Revenue who started their search at a Broadway restaurant have huevos rancheros on their face after allegations of a $5.6 million tax fraud scheme at the Seattle chain of Tacos Guaymas fizzled into a poquito $750 fine.
“It is really a great example of the philosophical Occam’s razor,” Robert Chicoine, lawyer for Tacos Guaymas owner Salvador Sahagun said in a statement to CHS. “If there are two explanations for an occurrence, the one that requires the least speculation is usually the correct explanation.”
Ferguson’s office charged Sahagun earlier this year with six counts of first-degree theft and three counts of possessing and using sales suppression software in what the AG said was a multi-year scheme to pocket more than $5.6 million in sales tax from cash transactions. Continue reading
A tax on sugary drinks sold in Seattle has produced more money than expected — and the missing Capitol Hill mystery pop machine had nothing to do with it. Now City Hall is sorting out how best to put the healthy revenue from unhealthy — without moderation! — beverages back into the community.
Friday, members of the Seattle City Council met with the Community Advisory Board of the Sweetened Beverage Tax to discuss why the tax exceeded revenue projections, what to do with the extra money, and to make recommendations for how to use the money in the 2018 and 2019 budgets.
“Communities of color and low-income people face the greatest disparities in terms of health and education outcome,” Christina Wong, co-chair of the board tells CHS. Continue reading
Even as they voted to repeal it, Seattle City Council members said Tuesday that an employee hours tax is probably the city’s best route forward to creating an alternative, non-regressive revenue stream to combat Seattle’s affordability crisis. The moves begin, now, to come up with a new, stronger tax plan.
District 3 representative Kshama Sawant, who has claimed the “Tax Amazon movement” as a follow-up to the successful $15 minimum wage fight, will be first out of the gates for shaping what comes next, saying Tuesday in council chambers that a “Tax Amazon Movement: Campaign Launch & Organizing Conference” is still happening. Continue reading
UPDATE 2:10 PM: In a vote interrupted by a chanting crowd and District 3 representative Kshama Sawant’s refusal to voice her yay or nay despite threats from President Bruce Harrell that he would close council chambers if outbursts continued, the Seattle City Council voted 7-2 Tuesday to repeal the city’s yet-to-be-implemented, unanimously-passed head tax on Seattle’s largest businesses.
As she seemingly goaded on her supporters in the council chambers, Sawant paused and let the chants swell before finally casting her vote against the repeal. Continue reading
If it survives a voter referendum cooked up this week by business and economic groups opposing the plan… And if the spending plan put forward by the City Council somehow can survive mayoral opposition…
How much of the roughly $237 million over five years in head tax revenue will come to Capitol Hill? The short answer is, some, but it’s too early to say exactly. A Seattle City Council resolution, however, gives a starting point. Along with the head tax, the council approved a companion resolution that laid out broad preliminary plans for the windfall of cash.
The resolution is non-binding and could change during the council’s budget process in the fall. Additionally, the Mayor Jenny Durkin’s office has indicated that she opposes the preliminary spending plans, council staff say. Continue reading
A group opposing the tax on Seattle big businesses to help pay for the city’s homelessness services and, hopefully, more affordable housing says it is launching a $300,000 campaign to put a referendum on the ballot to repeal the newly approved legislation.
The No Tax on Jobs campaign launched over the weekend with a website — notaxonjobs.com — and support from heavy hitters like the Seattle Metropolitan Chamber of Commerce and the Downtown Seattle Association.
“The reason we’re starting with a referendum is because we don’t have time to let the council shut down growth like this,” Saul Spady, president of Cre8ive Empowerment and part of the family that own’s Dick’s Drive-in, told Crosscut about the campaign. Continue reading
With reporting and photography by Alex Garland
With its planned vote on a new tax on its largest 3% of Seattle businesses, the city will be up against history Monday afternoon, District 3 representative and Socialist Alternative firebrand Kshama Sawant said Saturday as she prepared to lead her “March on Amazon.”
“This will be a historic victory,” Sawant told CHS. “This will be seen by every city where Amazon is building towers. But also every city in the United States. Because every city is facing a housing and homelessness crisis.”
But first the deals must be struck. Saturday’s march and rally from Capitol Hill on the massive Seattle employer came as Seattle City Hall contemplates two futures for a tax on its largest companies to help pay for affordable housing and homelessness services in a booming city where the problems of people living unsheltered is teetering on disaster. Continue reading
With reporting by SCC Insight
UPDATE 12:45 PM: With Durkan’s surprise counter proposal defeated. the Herbold/Gonzalez legislation was approved out of committee Friday but now faces a battle in securing a crucial sixth supporter before Monday’s full council vote. With negotiations underway, Saturday’s activism won’t be a victory march but could end up as a show of power to help change the tally and leave the mayor’s hands tied on the so-called Amazon tax. UPDATEx2: Durkan has released a statement saying she “cannot support” the legislation passed Friday. The full statement is below.
Seattle City Council members Lisa Herbold and Lorena Gonzalez were slated to be on Capitol Hill Friday morning to talk with small businesses about the proposed tax on large employers. But the deals may have already been cut on the plan to raise revenue to help pay for homelessness services and housing — before any further roundtables and before any marches on Amazon.
District 3 rep Kshama Sawant and supporters are now framing Seattle’s push for an employee tax on large companies as another historical moment for the city akin to the $15/hour minimum wage fight. “This is a key moment in Seattle’s history,” a statement from the Affordable Housing Alliance reads. “We have a chance to make the richest man in the world pay to build union-built, publicly-owned, affordable housing. This would be an inspiration to the rest of the country as cities offer tax incentive after tax incentive to attract Amazon’s HQ2. Let’s turn this race to the bottom into a race to the top.”
UPDATE: Herbold and Gonzalez Friday morning at Elliott Bay Book Co. in a meeting with Hill business representatives on the mayor’s tax proposal: “We’re looking forward to learning more about”
Gonzalez and Herbold’s meeting with Hill business constituents, meanwhile, comes before a key council committee meeting Friday and in the wake of a Mayor Durkan-fired shot across the bow of the veto-able raft of five council members said to support the $75 million employee tax legislation. Continue reading
The debate over the proposed Seattle business tax has turned into a fight. Next week, the Capitol Hill Chamber of Commerce is bringing neighborhood business representatives for a “roundtable discussion” with City Council members on the proposed tax:
Capitol Hill Chamber Roundtable Discussion with Council members re: Tax on Business
“It is important that small business SPEAK UP as Councilmembers finalize their proposal,” the Chamber implores.
The proposal from the council’s Lorena Gonzalez and Lisa Herbold aims to raise at least $75 million annually to address the twin crises of affordable housing for the city’s most vulnerable people, and the increasing number of people living unsheltered. It comes in two parts: an ordinance that enacts the tax, and a resolution that lays out the spending plan.