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Warning signs for plan for a new tax to help homelessness in King County

A nearly packed house for the first hearing on a proposal to allow King County to impose a new tax to fight homelessness.

The payroll tax would be between one-tenth of a percent and two-tenths of a percent on bigger businesses but only on the money paid to employees making least $150,000 a year.

The money will go to fight homelessness with housing, shelter and services.

While the mayors of Auburn and Kent are active in seeking solutions for homelessness, they are not ready to offer support for the tax.

“The city of Kent and many other cities in King County were not included in any of the conservation’s that led to the introduction of this bill,” said Kent Mayor Dana Ralph.

The tax has notable business support.

“Helping tackle local homelessness and the housing affordability crisis is core to our values as a company and as a workforce,” said Richard de Sam Lazaro, Expedia’s Manager of Government and Corporate Affairs

“This bill will cost me money,” said Dan Price, CEO of Gravity Payments. “I'm going to pay money as part of this bill. But what it will cost me will be less than our throwback to the '90s holiday party that we just threw. We don't need another throwback to the '90s holiday party next year. We need support for homeless people, for people that are on the edge because we don't have affordable housing in King County.”

Expedia joined other large businesses in a statement supporting a regional approach to homelessness, but also indicating they want individual cities like Seattle barred from imposing additional taxes

“I strongly support a regional solution. I also believe that this regional solution should preempt local municipalities from imposing a similar fee effectively double dipping the taxing of businesses inside municipalities,” said Joe Fugere, CEO of Tutta Bella Restaurants.

Supporters estimate the tax would raise $120 million a year to fight homelessness, if it can pass this year.

House Majority Leader Pat Sullivan represents South King County.

“Kent and Auburn had the chance to come down today and express those concerns but that doesn't mean you don't work through them.”

Work continues on the homeless tax with a broad spectrum of stakeholders scheduled to meet this week.