From 2007 to 2009, Seattle levied an employee head tax in the amount of $25 per full-time, full-year employee. In Nov. 2017, the Seattle City Council rejected a proposal to impose a new head tax that would bring in $25 million a year, which would have been used to help fund subsidized housing. Later that month, the Council adopted a resolution that created the Progressive Revenue Task Force. The task force was charged with making recommendations on “potential new progressive revenue sources, including an Employee Hours Tax.” (That is, a head tax.) The resolution also said that in considering a head tax, the task force should look at tax rates and exemption levels that would bring in $25 million to $75 million a year.

The Seattle Times reports that the task force had its last meeting yesterday and is recommending that the Council impose a head tax that would bring in $75 million a year. The task force presents three options:

• $10 million per year gross revenue exemption, and firms would pay a percentage of payroll based on the number of their FTEs;
• $8 million per year gross revenue exemption, and firms would pay $200 or $450 per FTE based on the number of their FTEs; or
• $8 million per year gross revenue exemption, and firms would pay $140 or $300 per FTE based on number of FTEs, plus 0.1 percent or 0.25 percent of payroll.

(Also, firms under these thresholds with revenues of at least $500,000 would pay $200 per year, as a “skin in the game fee.”)

Additionally, the task force suggests that Seattle should go beyond the $75 million head tax and add other taxes to bring the total revenue generated to $150 million, which “would be a solid start” in “ending the crisis of homelessness and housing insecurity.” These other taxes could include a local estate tax, “taxes on exceptionally high compensation,” and a real estate excise tax increase.

According to the Times, the Council will consider the proposal this month. Kevin Schofield of S.C.C. Insight has more.