Seattle’s booming economy has worsened an acute housing shortage.
In response, the city council recently passed a new tax that will impose a levy on companies with annual revenues of $20 million of about $275 per full-time employee every year. The new so-called “Amazon tax” takes effect in January 2019, and is expected to raise almost $45 million a year for five years.
Roughly 60% of the revenue will help fund new affordable housing, and 40% will go toward emergency services for the homeless. Seattle leads the nation in crane count for major U.S. metros, but the new tax may throw cold water on the hot construction market.
The city is coping with a growing homeless population, and many supporters of the head tax argue that the growth of tech companies like Amazon has contributed to the problem. Highly paid tech workers have been buying homes at a rapid pace, with prices rising quickly.
Related Stories
Codes and Standards | Mar 25, 2016
ASHRAE grants fund human thermal comfort database project
Aim is to help better understand thermal comfort in residential and commercial buildings.
Codes and Standards | Mar 25, 2016
OSHA finalizes new silica dust regulations
Construction industry has until June 2017 to comply.
Wood | Mar 23, 2016
APA updates Engineered Wood Construction Guide
Provides recommendations on engineered wood construction systems.
Codes and Standards | Mar 23, 2016
Affordable housing advocates differ on micro-apartment policy
New York’s luxury micro units could be first step to developing affordable units.
Codes and Standards | Mar 21, 2016
GRESB launches Health and Well-being Module for real estate industry
Optional supplement to environmental, social, and governance assessment.
Codes and Standards | Mar 4, 2016
U.S. Supreme Court lets San Jose affordable housing law stand
Law attempts to alleviate Silicon Valley’s high housing costs.
Codes and Standards | Mar 2, 2016
WELL standard offers multiple benefits for owners, says real estate executive
Could be a recruiting tool for occupant companies.
Cultural Facilities | Mar 1, 2016
China bans ‘weird’ public architecture, gated communities
Directs designers of public buildings to focus on functionality.
Energy Efficiency | Feb 23, 2016
Economists, energy efficiency practitioners need to work together for better cost/benefit studies
Flawed energy efficiency research yields misleading, confusing results.
Codes and Standards | Feb 16, 2016
New York City implements new crane safety plan following deadly accident
The plan includes restrictions on crawler cranes during windy conditions.
