Amazon shares rise as Seattle City Council repeals ‘head tax’

Amazon shares closed higher Tuesday as the Seattle City Council met to vote to repeal the incoming 'head tax'.

Amazon shares rise as Seattle City Council repeals ‘head tax’

Amazon shares closed higher in the US Tuesday after the Seattle City Council voted to repeal the large business tax that had been agreed only months ago. The decision to repeal the tax, which was designed to hit larger businesses, including Amazon, followed a successful business-led campaign against it.

Amazon shares ended the US Tuesday trading session 0.57% in the green at $1,698.75. The stock is also higher in after-hours activity.

Head tax would hit Amazon, Starbucks

The large business tax was set to be put in place from January 2019 and would have required each business to pay an additional $275 tax charge per year, per employee. This, of course, would hit the bigger businesses who employ the most staff in the city.

The monies raised from the tax were then set to be put towards helping build more affordable housing and the provision of more widely available mental health services, among other details.

Amazon, Starbucks and the Northwest Grocery Association were among the biggest backers of a business-led campaign against the incoming tax. And, Amazon had also reportedly put plans for a new office in the City on hold, while the tax looked like it was going ahead.

However, the campaign has proved successful for the big businesses and the tax was repealed at a special council meeting, Tuesday.

Seattle Mayor announces decision

Following the meeting, where the decision to repeal the tax was made, a special press release was published sharing the details of the decision. And, Seattle Mayor Jenny Durkan tweeted that the City would continue to work to build more home and work with local businesses.

 “We all share the same goals. To be successful, we all need to be part of the solution. Instead of engaging in a long, political fight, we must turn to action. We will continue to move forward, building a true regional partnership with business, advocates, and philanthropy,” Durkan tweeted.

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