Could the per-head business tax hurt Seattle staple Bartell Drugs?
Oct 30, 2017, 7:10 AM | Updated: 9:57 am

Seattle Councilmember Mike O'Brien proposed a new business tax on Seattle's biggest companies recently. (Seattle Channel)
(Seattle Channel)
A business tax proposed by two Seattle city council members would cost the city鈥檚 largest companies an estimated $100 per employee in an effort to raise funds to aid homelessness. It鈥檚 a fraction of the revenue for mega-retailers like Amazon or Starbucks, but the chair of historical, local chain Bartell Drugs is worried the tax could cause real harm to the company’s bottom line and its employees.
Proposed business tax targets Seattle’s largest companies
鈥淚 think when Councilmember O鈥橞rien imposed this, I mean there鈥檚 this larger thought that, 鈥榃ow, well this is a tax on these companies paying $85,000 a year for a whole bunch of employees, maybe use that giant Internet retailer that exists here as an example,鈥 成人X站 Radio’s Mike Lewis said on “Tom and Curley.”
“This is Bartell鈥檚, that has people who are not making that sort of money. And they鈥檙e a big company locally, but they鈥檙e not Amazon.”
Bartell Drugs has been a staple in Washington State for over 100 years. Founded in 1890, there are more than 67 stores today. The company鈥檚 dominant presence and revenue as a local business means Bartell Drugs falls into the category of companies that would be required to pay the tax.
But those costs can add up quickly. Bartell Drugs brings in around $420 million in revenue — compare that, though, to national drug stores like CVS, which earned $177.5 billion in 2016. In a letter obtained by , company chairman George Bartell wrote about the potentially harmful effect of the city鈥檚 taxes and rising costs for the longstanding franchise:
鈥淚 urge you to abandon the idea of a head tax. We are a significant employer here in Seattle and we reached a breaking point on the city-imposed fees and costs. Instead, I ask you to spend the money already raised for homelessness prudently and effectively and that you continue to partner with the significant number of non-profit organizations that are rallying to confront this issue.鈥
Lewis and Tom Tangney both agreed that the tax may have been aimed at Seattle鈥檚 huge corporations while overlooking those who operate more closely to the margin.
For Lewis, that cumulative effect — something noted in Bartell’s letter — is what the council members who proposed the tax have overlooked.
鈥淭he problem sometimes when another tax is proposed on business in town 鈥 what bothers me the most is that they鈥檙e always proposed in a vacuum,鈥 Lewis said. 鈥淟ike, 鈥榯his is a tax that鈥檚 going to do this for this,鈥 … just be a little bit more candid with people and say, this will be on top of the four other things we鈥檝e actually added this year or the ten other things we鈥檝e added over the last three.
“There鈥檚 never really a discussion of the cumulative effect. I鈥檓 a supporter of homeless programs, but I find this sort of thing like, Well, wow, where is the pocket deepest, let鈥檚 just sort of rifle through that, and that鈥檚 the problem, I think, with this proposal.鈥