Seattle Reaches Compromise on Controversial Tax for Affordable Housing

The Seattle City Council, prompted by pressure from Mayor Jenny Durkan, approved a smaller version of the "Head Tax" that provoked the ire of Amazon.

2 minute read

May 15, 2018, 11:00 AM PDT

By James Brasuell @CasualBrasuell


Seattle, Washington

VDB Photos / Shutterstock

"On Monday, the Seattle City Council unanimously passed an amended version of the Employee Hours 'Head' Tax built on a compromise with Mayor Jenny Durkan that lowered the cost per full time employee from $500 to $275," reports Doug Trumm.

With $28.7 million per year on average for affordable housing creation, Council Staff project the head tax will create 591 new homes for people below 30% of area median income. That works out to approximately $242,600 per unit. An additional $12.5 million over the last three years of the head tax will support the operation another 302 existing deeply-affordable homes. In essence, the head tax is like having another housing levy, but not funded through property taxes.

The new tax created controversy earlier in May, when Amazon ceased planning the Block 18 project to signal its displeasure with the proposition. After the amended version of the new tax passed through City Council, Amazon announced it would resume planning for Block 18, but has remained undecided about the fate of the Rainier Skyscraper project already under construction (the company might decide to sublease some or all of the space rather than fill it with Amazon employees).

Matt Day reports in detail on Amazon's reaction to the news of the Head Tax passing through the City Council, including publication of this statement by Amazon spokesperson Drew Herdener: "While we have resumed construction planning for Block 18, we remain very apprehensive about the future created by the council’s hostile approach and rhetoric toward larger businesses, which forces us to question our growth here."

Tuesday, May 15, 2018 in The Urbanist

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 11, 2025 - Diana Ionescu

Metrorail train pulling into newly opened subterranean station in Washington, D.C. with crowd on platform taking photos.

Congressman Proposes Bill to Rename DC Metro “Trump Train”

The Make Autorail Great Again Act would withhold federal funding to the system until the Washington Metropolitan Area Transit Authority (WMATA), rebrands as the Washington Metropolitan Authority for Greater Access (WMAGA).

June 2, 2025 - The Hill

Large crowd on street in San Francisco, California during Oktoberfest festival.

The Simple Legislative Tool Transforming Vacant Downtowns

In California, Michigan and Georgia, an easy win is bringing dollars — and delight — back to city centers.

June 2, 2025 - Robbie Silver

Color-coded map of labor & delivery departments and losses in United States.

The States Losing Rural Delivery Rooms at an Alarming Pace

In some states, as few as 9% of rural hospitals still deliver babies. As a result, rising pre-term births, no adequate pre-term care and harrowing close calls are a growing reality.

5 hours ago - Maine Morning Star

Street scene in Kathmandu, Nepal with yellow minibuses and other traffic.

The Small South Asian Republic Going all in on EVs

Thanks to one simple policy change less than five years ago, 65% of new cars in this Himalayan country are now electric.

7 hours ago - Fast Company

Bike lane in Washington D.C. protected by low concrete barriers.

DC Backpedals on Bike Lane Protection, Swaps Barriers for Paint

Citing aesthetic concerns, the city is removing the concrete barriers and flexposts that once separated Arizona Avenue cyclists from motor vehicles.

June 15 - The Washington Post