Amazon pauses new Seattle office building set to create 7k jobs

Amazon temporarily stopped its plans for a new office building in downtown Seattle, pending a city council decision that would impose a new tax on top area businesses, according to CNBC.

The city council's proposed measure would tax employee hours and eventually transition to a payroll tax in 2021. The proposed tax would affect the city's 500 largest businesses and generate an estimated $75 million annually for Seattle.

Amazon's planned office building would house 7,000 employees, but the company has halted these plans and is considering subleasing space in a newly leased building downtown.

"Pending the outcome of the head tax vote by city council, Amazon has paused all construction planning on our Block 18 project in downtown Seattle and is evaluating options to sublease all space in our recently leased Rainier Square building," Amazon's Vice President of Global Corporate and Operations Communications Drew Herdener said in a statement, according to CNBC.

Most of the tax revenue will likely go toward affordable housing and homeless initiatives, to which Seattle already annually dedicates $63 million to. The council will vote on the proposal May 14.

More articles on business:

T-Mobile, Sprint strike $26B merger deal: 4 things to know
Walmart signals new international strategy with $4.1B UK grocery sale
Amazon ups annual Prime membership to $119: 4 notes on Amazon's Q1

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Featured Webinars

Featured Whitepapers