Seattle businesses have spent $500K against social housing tax

A construction crane in Seattle’s Central District. (Matt M. McKnight/Cascade PBS)
With just a few days remaining before the Feb. 11 special election, some of Seattle’s most prominent businesses are spending big to oppose a new tax to fund social housing.
The People for Responsible Social Housing PAC has raised more than $434,000 and spent more than $515,000 opposing Proposition 1A and supporting Proposition 1B, according to data from the Washington Public Disclosure Commission. The bulk of the spending has been on campaign mailers along with other digital advertising.
Microsoft and Amazon each contributed $100,000. The Seattle Metropolitan Chamber of Commerce gave $35,000 in cash and $5,400 through in-kind services. T-Mobile, timber company Weyerhaeuser, Puget Sound Energy, Alaska Airlines and the Seattle Kraken ownership group contributed $5,000-$20,000 as well.
Voters must go through a two-step process to decide if and how to fund social housing, a form of mixed-income, publicly owned affordable housing. They must first vote Yes or No on whether to fund social housing at all. They then choose between Prop 1A or Prop 1B.
If passed, Prop 1A would levy a 5% “excess compensation” tax on employer payroll expenses for each Seattle-based employee paid over $1 million in annual compensation. Employers would pay a 5% tax on any dollar over $1 million in total employee compensation.
The tax would generate an estimated $50 million a year that would go to the newly created Seattle Social Housing Developer to pay for construction of housing meant for lower-income to upper-middle-income residents. Higher-income residents would pay higher rents, which would help subsidize the lower rents paid by lower-income residents.
Seattle voters approved the creation of the Seattle Social Housing Developer in the February 2023 election, which had been put on the ballot through a citizens’ initiative led by advocate group House Our Neighbors. The same group collected signatures to put the excess compensation tax to a vote this Feb. 11.
The Let’s Build Social Housing PAC has raised more than $239,000 this year to support Prop 1A, with $125,000 from the Inatai Foundation and $60,000 from Participatory Budgeting Oregon. Labor unions IBEW Local 46 and UFCW 3000 contributed, along with advocacy orgs and nonprofits such as 350 Seattle and Washington Community Action Network. Almost half of the 2025 contributions came from individual donors. The PAC raised more than $353,000 in 2024 during the campaign to get 1A on the ballot, 87% of which came from individual contributors.
In September, the Seattle City Council voted to place a competing measure on the ballot.
Instead of creating a new tax, Prop 1B draws from the existing Jumpstart payroll tax. It also caps the income limits for social-housing residents at a lower level than outlined in the Seattle Social Housing Developer charter voters approved in 2023.
Seattle’s Chamber of Commerce has led the campaign against creating a new business tax with Prop 1A. The Chamber has called into question the Social Housing Developer’s ability to handle $50 million a year in revenue, since the newly created organization currently has only one staff member and a volunteer board of directors. Up to 5% of revenue from either Prop 1A or Prop 1B could be used for the developer’s administrative costs, including staffing.
New polling from the Northwest Progressive Institute, a left-leaning think tank, found that voters are nearly evenly split between Props 1A and 1B, with 33% preferring 1A, 31% preferring 1B and 17% not sure.
Ballots must be returned before 8 p.m. on Tuesday, Feb. 11.