As part of its advocacy work, Friends of Seattle signed the following letter.

Mayor Greg Nickels
Councilmembers Tim Burgess, Sally Clark
Richard Conlin, Jan Drago
Jean Godden, Bruce Harrell
Nick Licata, Richard McIver
Tom Rasmussen
600 4th Ave. 2nd Floor
Seattle, WA 98104

July 1st, 2009

Re: Proposed Repeal of Head Tax (Business Transportation Tax)

Dear Councilmembers and Mayor Nickels,

Funding from the Head Tax (also called the Business Transportation Tax), a tax which is relatively insignificant for individual business, is an important source of funding for transportation improvements that help to promote more responsible forms of transportation, such as biking and walking. While $4.7 million is not much of SDOT’s budget, it makes up a large percentage of total funding for pedestrian and bicycling projects in Seattle. Because of the incredible infrastructure deficit, especially in the Southeast and North parts of the city, and the fact that a prioritized project list has been identified through the draft Pedestrian Master Plan, it seems clear that there is a use and a specific need for these funds.

In fact, there is a clear use and a specific need for funding much greater than this, which is why Seattle needs all it can get for transportation projects.

In turn, those transportation projects create much-needed construction jobs. At the same time, because so little in taxes are paid for each business, it is unlikely that repealing this tax will result in more jobs.
We also know that reducing Vehicle Miles Traveled (VMT) is a key step in the City of Seattle’s goal to mitigate Climate Change. Recent studies have shown that policies that discourage driving downtown by removing parking subsidies have a beneficial effect on VMT. Fifty-three percent of climate changing emissions come from the transportation sector. Reducing VMT means reducing emissions.

The Head Tax is one tool this city has to reduce VMT by creating an incentive for people who work downtown to use alternative modes of transportation to get to work and creating a revenue source for pedestrian improvements. The Head Tax prices parking appropriately and creates funding for responsible forms of transportation. It is good policy to support a sustainable transportation policy for Seattle.

While this tax may not be perfect, we feel that it could be strengthened by improving paperwork and linking it to a more effective VMT-reduction process. As tax experts and business owners would tell you, this tax is not a significant financial burden and requires only a small amount of time to complete the paper work. Washington State has the 12th most favorable business tax climate in the US according to The Tax Foundation, a nonpartisan and highly respected tax policy organization.
We recognize your interest in making a statement that supports businesses as they struggle in these difficult economic times. But this is not a symbolic gesture. It has serious consequences for the broader agenda of making our city more sustainable.
It is for these reasons – the tax’s use as a VMT-reduction tool, the fact that the tax is not a financial burden on businesses, and the funding for responsible forms of transportation that will be lacking – that we do not support the proposal to repeal the Business Transportation Tax.

Sincerely,

Rebecca Deehr
Co-Chair, Pedestrian Master Plan Advisory Group (PMPAG)

Paulo Nunes-Ueno
Co-Chair, PMPAG

PMPAG members:
Amy Shumann

Suzanne Anderson

Mark Landreneau

Robert Kaufman

Kirste Johnson

Chas Redmond
PMPAG Member, Feet First Board member

Bea Kumasaka, PMPAG, Belltown Housing and Land Use Group

Renee Staton
Safe Walks

Dale Johnson
Safe Walks

David Hiller
Advocacy Director, Cascade Bicycle Club

Joshua Curtis
Executive Director, Great City

Gary Manca
President, Friends of Seattle