Breaking News: Google’s HQ City Advances After Company Backlash Triggers Seattle, Cupertino to Pull Back From Questionable ‘Head Tax’
The Mountain View City board approved a procedure for voter factor to consider of a staff member “head tax,” a week after neighboring Cupertino, CA chose to delay factor to consider of a comparable referendum for a minimum of a year.
Mountain View leaders late Tuesday all voted to embrace the procedure placing a company license tax of between $9 and $150 per worker on the Nov. 6 tally. With Google and other large companies paying the greatest rate, the measure would raise about $6 million a year for programs to deal with traffic gridlock and skyrocketing real estate expenses.
“We keep couching this as a Google tax, but it’s actually a company license [fee] upgrade. It hasn’t been raised in 30 years,” said council member Ken Rosenberg.
Google, the city’s biggest company, would create $3.3 million annually; more than half of the total raised by the city’s first business license tax boost given that 1954. Mountain View’s current $30 flat tax is among the lowest in the San Francisco Bay Location.
The council prepares to invest about 80 percent of the profits on efforts to improve traffic congestion. In a buddy effort to raise profits, the council likewise authorized a ballot procedure enforcing a 9 percent tax on gross invoices of cannabis-related organisations.
Mountain View Vice Mayor Lisa Matichak urged the city to authorize a more modest flat tax proposed by the Mountain View Chamber of Commerce.
“I feel like we’re honestly hurrying this a bit. We want to have a business friendly community. We want businesses to stay,” Matichak stated.
Mountain View Mayor Lenny Siegel has long pushed for a head tax. Recent surveys show approximately 62 percent of regional voters support a higher tax on big employers to spend for traffic congestion and other byproducts of quick development of tech companies like Google and Symantec.
Google’s staff member count has soared from 10,000 to more than 23,000 over the past years during the tech boom. The internet search giant has declined to comment on the proposed tax, similar to Apple’s radio silence about Cupertino’s now-shelved head tax measure.
The Silicon Valley Leadership Council, the Chamber of Commerce and other business leaders slammed the Mountain View procedure as a tax on jobs that could induce large business to move away or broaden somewhere else.
Seattle’s approval of a head tax in May triggered an earthquake in the Emerald City that rippled down the West Coast and influenced comparable efforts in Silicon Valley’s Cupertino and Mountain View, cities also facing the repercussions of fast tech sector growth. The Seattle City board action, nevertheless, immediately drew the rage of Amazon, Starbucks and other large business, which derided the procedure as a “tax on job production.”
Earlier in Might, Amazon had actually revealed it would “stop briefly” pre-construction activity at a high-rise near its downtown headquarters and reconsider growth plans in its head office city pending the Seattle council’s decision. After the council passed a scaled-back proposition, Amazon and other large business ripped the decision and contributed large sums to a well-funded effort to repeal the tax.
Seattle leaders, confronted with ballot information revealing opponents would likely succeed in certifying and passing a November referendum beating the tax, voted to rescind the procedure June 12.
A week later, Cupertino last Tuesday shelfed a tally measure that would have imposed approximately $31.6 million in yearly per-employee taxes on Apple, the city’s largest company. The action left Mountain Deem the only Silicon Valley city standing to consider a head tax procedure for inclusion on the Nov. 6 tally.
Sunnyvale has actually charged a per-employee tax because the 1970s. San Jose and Redwood CIty likewise have a per-employee tax on businesses.