Seattle faces losing hundreds of millions in tax revenue as Starbucks expands operations in Tennessee, according to local reports.
Fox 13 Seattle reported the Emerald City could lose up to $750 million in tax revenue in coming years as Starbucks expands in Tennessee instead of Washington.
In a press release, Starbucks announced a $100 million investment will bring 2,000 new jobs to Nashville. The coffee chain will employ up to 2,000 people over the next several years in corporate-related operations.
The Nashville office will directly support continued coffeehouse expansion and rising customer demand, particularly in the southeastern U.S., while working closely with the company’s global headquarters in Seattle.
Tennessee Governor Bill Lee welcomed the announcement, calling it a testament to the state’s strong economy and workforce. The investment will create 2,000 new jobs for Tennesseans.
The move contrasts with Seattle Mayor Katie Wilson’s post-election remarks encouraging a crowd to boycott Starbucks during a union workers rally in November. “I am not buying Starbucks, and you should not too,” Wilson said.
In a statement, Wilson said: “Starbucks is a core part of Seattle’s identity. We’re proud to be home to its first store, its headquarters and so many of the workers who make the company what it is. We’re focused on maintaining a strong partnership with leadership and with employees, so Starbucks continues to succeed in the city where it all began.”
The Tax Foundation ranked Washington sixth in the nation for doing business in its 2014 State Business Tax Climate Index. By 2026, the state ranked 45th overall.
In March, Washington state Democrats passed the state’s first-ever income tax, known as the “millionaires tax,” which Democratic Governor Bob Ferguson signed March 30.
The tax imposes a 9.9% income tax on households earning more than $1 million annually. It takes effect January 1, 2028, with first payments due in April 2029.
The Wall Street Journal editorial board called the tax a “con” that will “inevitably capture the middle class.”