Tacoma, Pierce County leaders try to entice Seattle businesses with tax credits

TACOMA, Wash. – The backlash from Seattle’s employee tax is creating the perfect opportunity for Pierce County leaders to try to entice businesses to the South Sound.

The senior reporter at the Puget Sound Business Journal predicts tech jobs will stay in Seattle, but South Sound leaders argue other companies, more family-friendly industries, may find Pierce County’s offer too appealing to pass up.

Seattle’s sister-city to the south wants to come out of the shadows.

“Tacoma is enjoying new record breaking growth with multi-developments, restaurants, and services,” said Tacoma Mayor Victoria Woodards.

But too many of those newcomers are heading north to Seattle for work.  So Tacoma crafted four tax incentives for new companies.

“Businesses who create new positions in Tacoma can qualify for up to four different job credits. That total equals $1,500 per employee per year for five years,” said Woodards,

Tacoma's tax credit are the opposite of Seattle’s $275 per employee tax on big businesses.

“They might as well put a sign up at city limits that said we’re closed for business,” said Puget Sound Business Journal senior reporter Marc Stiles.

Stiles said it’s reason enough for new businesses to consider the more family-friendly and cheaper Tacoma.  What about big tech giants like Amazon, Google, or Expedia?

“Top talent wants to be in an urban environment less so a suburban environment,” said Stiles.

That’s why Stiles doesn’t think Seattle’s tech bubble will burst because of the new employee tax.

“There are a lot of other tech companies, Google is expanding to South Lake Union and Facebook is growing like crazy so the draw is to be near these companies that are innovating,” said Stiles.

If nothing else, Seattle’s skyrocketing cost of living is nothing compared to the original Silicon Valley of the Bay Area.  But considerably less than that is the cost of living in Tacoma.  Add in the tax incentives, and Tacoma and Pierce County leaders are rolling out the red carpet for new businesses.

“As we work to recruit and retain companies that bring sustainable family living-wage jobs and sustain growth,” said Woodwards.

With State Farm announcing plans to leave Tacoma, there are plenty of office spaces and tax breaks to go around.

Pierce County leaders announced Tuesday they want to be in the tech game.  There is a small but growing tech scene sprouting up near the UW branch in downtown Tacoma.

Ultimately, Stiles said, Seattle business owners are fed up with the city’s inability to control homelessness and provide affordable housing.  That’s why he believes repealing this employee tax will show up on the November ballot where business owners and employees will vote down the tax.