Seattle lawmakers will repeal a tax on large companies after facing criticism from companies led by Amazon, a month after the city council approved the measure, according to CNBC.
The tax was enacted to fund anti-homelessness initiatives, but announcement of it immediately prompted Amazon to stop planning construction of a building near its downtown headquarters. A coalition of local businesses pushed a referendum to overturn the tax in November, but the city council will hold a special meeting June 12 to repeal it.
"It is clear that the ordinance will lead to a prolonged, expensive political fight over the next five months that will do nothing to tackle our urgent housing and homelessness crisis," said Seattle Mayor Jenny Durkan, according to CNBC.
The tax would have charged $275 per full time worker each year to raise nearly $48 million annually for affordable housing for companies that make over $20 million in gross annual revenue.