Confusion has gripped Seattle residents in recent weeks, fueled by rumors circulating online about a proposed tax on groceries. The culprit? An email allegedly from Instacart, the popular grocery delivery service, warning customers about the new levy. But fear not, Seattleites, your pantries are safe (for now).
The email claimed that “Seattle City Council is racing to pass legislation that would force yet another tax on Seattilites,” specifically targeting groceries. This sparked a flurry of online discussion and concern, with many residents understandably alarmed at the prospect of a higher price tag at the checkout.
However, upon closer inspection, the rumors prove unfounded. While the Seattle City Council is indeed considering new legislation impacting the delivery app industry, it takes the form of a fee, not a tax. This crucial distinction clarifies the intent and scope of the proposal.
Here’s a breakdown of what we know for certain so far:
- The Proposal: The Seattle City Council’s Public Safety & Human Services Committee discussed a 10-cent fee on orders placed through delivery apps like Instacart, DoorDash, and Uber. Importantly, orders containing only groceries would be exempt from the fee.
- Purpose: The estimated $2.1 to $3 million generated by the fee would be used to fund regulatory costs associated with implementing new labor standards for app-based workers.
- Origin: Initially, a tax was considered, but this was later revised to a fee to ensure the collected revenue is directly allocated to its intended purpose and doesn’t get absorbed into the general city budget.
- Next Steps: The final decision on the proposal rests with the City Council, with deliberations scheduled to begin during the upcoming annual budget review.
While the fee wouldn’t directly impact grocery purchases, it’s understandable how the initial wording of the email, coupled with the sensitive nature of food costs, could trigger confusion and concern. Instacart, facing potential backlash, has since clarified its stance, acknowledging the confusion and emphasizing its opposition to any tax on groceries.
While grocery taxes may be a hot-button issue in some regions, Seattle’s food staples are not currently under threat. The proposed fee, though focused on delivery apps, serves a different purpose and wouldn’t directly impact grocery bills.
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