Seattle Council Approves Tax Overhaul Targeting Amazon, Faces 2025 Vote
In a move that could reshape Seattle’s economic framework, the City Council has approved a sweeping overhaul of the city’s business and occupation (B&O) tax, aiming to alleviate burdens on small enterprises while imposing steeper levies on corporate giants. The legislation, passed on August 4, 2025, eliminates B&O taxes entirely for businesses generating less than $5 million in annual revenue, a threshold that covers roughly 95% of the city’s companies. For those exceeding $1 billion in revenue—predominantly tech behemoths like Amazon and Microsoft—the tax rate would climb to 0.7% on service-related income, potentially generating an additional $90 million annually for city coffers.
This reform, spearheaded by Mayor Bruce Harrell, comes amid ongoing debates about fiscal equity in a city where tech-driven growth has exacerbated inequality. Proponents argue it fosters entrepreneurship by zeroing out taxes for mom-and-pop shops, allowing them to reinvest in operations rather than compliance. Critics, however, warn of unintended consequences, such as discouraging large firms from expanding locally or prompting relocations, echoing past tensions like Amazon’s 2018 headquarters search after a previous tax hike attempt…