Amazon says it will move forward with plans for a new agency building in Seattle after the city council lashed a proposed corporate tariff by nearly half.

Amazon halted contrives for the new structure earlier this month in response to the proposed levy, which is designed to help the city’s growing homelessness trouble. The city council approved the smaller tax bill unanimously on Monday, and Seattle mayor Jenny Durkan promised to sign it. But Amazon still isn’t happy.

“We are disappointed by today’s city council decision to introduce a tariff on jobs, ” Amazon spokesperson Drew Herdener said in a statement. “While we have resumed creation planning for Block 18, we remain very apprehensive about the future created by the council’s hostile approach and rhetoric toward large occupations, which forces us to question our growing here.”

Amazon hasn’t yet decided whether to use space it leased in another Seattle building or sublease it, as it had threatened to do. Meanwhile, the company is still planning a second headquarters somewhere outside of Seattle.

As originally proposed last month, the tax would have imposed a per-employee fee of about $500 a year on Seattle business with receipt of $20 million or more. That would have worked out to less than one percent of Amazon’s annual earning. In 2021, the per-employee tax would have become a 0.7 percentage payroll tax.

Durkan negotiated the compromise version of the bill, which will impose an annual fee of about $275 per employee and will not convert into a payroll taxation. City council calculates the tax will develop $50 million per year.

The council overtook a non-binding resolution Monday to spend 66 percentage of the money on cheap casing; 32 percent on homelessness-related costs such as emergency shelters, scrap pickup, and raises for service employees; and 2 percent on disposal, the Seattle Times reports. Seattle’s unsheltered population was increased by 44 percentage to 5,500 over the past two years, according to a recent US Department of Housing and Urban Development report. The city hosts the third-largest homeless population in the country.

Amazon says the city doesn’t need more fund, saying metropoli receipt developed to $4.2 billion in 2017, from $2.8 billion in 2010. “This revenue increase far outpaces the Seattle population increase over the same time period, ” Herdener said in a statement. “The city does not have a revenue problem–it has a spending efficiency problem.”

Amazon was far away from alone in that sentiment. More than 100 Seattle based corporations, including tech business like Expedia, Chef Software, and Tableau, signed a letter exhort the city council to reject the tax, arguing that it will penalize industries for creating jobs.

“If they cannot offer a warm meal and safe bed to a five-year-old child , no one guesses they will be able to make housing affordable or address opiate craving, ” Starbucks spokesman John Kelly said of the city government in a statement. Starbucks did not sign the letter opposing the tax. “This city pays more attention to the desires of the recipients of illegally parked RVs than families endeavouring emergency shelter.”

Supporters of the tax were more happy with the compromise. “Given extortion from @JeffBezos& Goliath-like clout of @ amazon, even a smaller tax is huge victory& pushback on corporate bullying, ” tweeted socialist city councilor Kshama Sawant, who actually planned doubling, instead of halving, the corporate tax.

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