COVID Local Tax TREND.

Where: Seattle

The proposed tax:

• 1.3% tax on the payroll expenses of large businesses
• estimated to generate $500 million/year
• applies to businesses with $7 million+ in Seattle payroll
• subcontractors would be considered to be on a company’s payroll for purposes of the tax
• will apply to 800 employers

How will the revenue be allocated?

• $200 million for cash assistance to low-income households impacted by the COVID-19 crisis
• 75% of remainder to affordable housing
• 25% of the remainder to the city’s Green New Deal efforts

Tax Foundation | Seattle Officials Return with New Proposal for Taxing Employment