It looks like the Seattle City Council will put off plans to repeal the city's employee "head tax," or Employee Hours Tax, a $25-per-employee tax charged to business owners in Seattle.

City Finance Director Dwight Dively told the council's Transportation Commmittee this morning that the city could make up the $4.5 million in annual revenue it will lose if it cancels the head tax in 2010. That eased concerns of some council members, including Transportation Committee Chairwoman Jan Drago, that sidewalks and other small projects would be postponed if the tax went away.

Still, three members of the council's Budget and Finance Committee said they support postponing a vote on ending the tax until the council considers the 2010 budget later this year.

"I don't want to deal with this in a piecemeal fashion," said Councilmember Nick Licata.
Councilmembers Jean Godden and Richard McIver oppose removing the tax.

Council President Richard Conlin and member Tim Burgess, along with Mayor Greg Nickels, support removing the tax right away.

It's unpopular with business, hasn't brought in the projected amount of revenue, and is complicated to administer and pay.

The tax was initially Nickels' idea, and as Publicola pointed out recently, he indicated his support for the tax as recently as a May forum.