The projected Seattle head taxation has split the town. (GeekWire Photos / Monica Nickelsburg) UPDATE, Monday day: Seattle moves smaller ‘head tax’ on large businesses, but will compromise appease Amazon? The entire Seattle City Council is not able to vote on a controversial tax on the city’s top-grossing businesses Monday afternoon. The so-called “head tax,” understood by a few as the “Amazon taxation,” has ignited a furious debate about the accountability of town government and the obligation of the tech industry to help mitigate the effects of Seattle’s expansion. Despite fierce resistance from Amazon and other people in the tech business, the Council appears to be moving forward with the strategy, which is projected to increase $75 million annually to combat Seattle’s growing homelessness crisis. The situation is dynamic and may still change before the vote. There are reports of a potential fresh compromise as of Monday morning. Continue reading to get up to speed about the issue beforehand of the City Council’s vote and see the meeting over starting at 2 pm Pacific. How do the tax perform? Businesses that earn more than $20 million in revenue within Seattle city limits could qualify for the taxation. It is more colloquially known as a “head tax,” because it could be levied each head (or employee). That comes out to about $500 annually for full-time employees. Seattle would decide which companies qualify with all the amount they cover the city’s B&O taxation, which can be based on revenue. How much money would it increase? The city estimates that the tax will generate $75 million annually for both years the head tax is set up. In 2021, it could be replaced using a 0.7 percent tax. How can the funds be utilized? The specific breakdown of paying will be decided by the yearly funding but the majority of funds are intended to proceed toward building deeply reasonably priced housing. The remaining will probably fund homeless providers and administrative costs. How much can Seattle spend on homeless services now? Other estimates put the number at roughly $54 million in 2017. The town says it has assembled about 12,000 greatly affordable units but requires funding for much more to take care of the swelling crisis. How much money does the town need to fix the homelessness disaster? The consulting firm McKinsey and Company initially launched the record in partnership with the Seattle Metropolitan Chamber of Commerce however, the company group is no longer affiliated with this, Crosscut reports. What exactly does Amazon do on displaced issues now? Through fees connected with its real estate development in Seattle, the company has contributed a cumulative total of $40 million into the city’s affordable housing finance. Separately, the company has committed more than $40 million into 2 teams: the Mary’s Place shelters for displaced households, such as space in company buildings; and the FareStart non-profit organization for homeless and homeless men, women, and kids, such as space and equipment for FareStart restaurants. Who’d have to pay? The town is not releasing the record of 585 businesses that will be subject to the taxation. Amazon would certainly qualify, as might some out-of-town tech giants (see under). The e-commerce giant will be on the hook for about $20 million a year. That price tag led Amazon to pause construction on a few of its Seattle office systems and reconsider moving into another, impending the City Council’s conclusion. The combined projects would home about 7,000 employees. Imagine if a company has a presence in Seattle but headquarters someplace else? More than 100 out-of-town tech companies — such as Facebook, Google, Apple, and Uber — also have established engineering facilities in Seattle and a number of them are taxed under the proposed laws. That’s because the tax is based on revenue earned in Seattle, regardless of a provider’s headquarters. See our comprehensive explanation here. How can the tech industry feel about the taxation? Read a few of their responses to the suggestion here. Needless to say, not everybody in the tech industry opposes the taxation. How likely is this to maneuver? Dependent on the Seattle City Council’s voting track album, the law is very likely to pass by a minumum of one vote. The four remaining councilmembers unsuccessfully endorsed a last-minute compromise released by Durkan last week. If the proposition passes 5-4, it might continue to be exposed to a veto by Durkan, who’s said she doesn’t encourage the tax in its present form. The Council will require six votes to decode a mayoral veto. Check back for coverage of the vote on GeekWire Monday day.