The other reason Bezos may be moving to Miami
Amazon founder Jeff Bezos recently announced that he is leaving Seattle for Miami to be closer to his girlfriend, parents, and the Florida operations of Blue Origin, his space company.
But Bezos also has a history of picking cities based on another factor: taxes.
In the past, taxes have always been a top consideration for Bezos. He reportedly launched Amazon in Seattle in the 1990s because of the city's low sales tax burden. At the time, online retailers paid sales tax based on the population of their home state. Washington also famously doesn’t have an income tax.
In his online announcement about the move, Bezos reminisced about Amazon’s original home in the Seattle area, his garage.
In recent years, Washington has become an increasingly more expensive state for the wealthy. State legislators recently passed a capital gains tax, which would mean a big price tag whenever Bezos sells Amazon stock.
Washington's capital gains tax has been challenged in court, and was upheld by the state's Supreme Court. It has already prompted some wealthy residents to leave the state. Backers of the capital gains tax point to research showing these types of policies are not a top consideration when wealthy people choose to move.
Washington's capital gains tax continues to face legal challenges with conservative groups aiming to get the issue in front of the U.S. Supreme Court. Meanwhile, Seattle leaders have eyed a local capital gains tax of their own. In 2023, Seattle Councilmember Alex Pedersen introduced a proposal to replace the city's water tax with a local 2% capital gains tax.
Bezos lives in Medina, and therefore would not be on the hook for any such taxes in Seattle.
In his new Florida home, Bezos won’t be on the hook for state income or capital gains taxes.
RELATED: What could Amazon's Jeff Bezos be losing or gaining from the move?
Update 11/7/2023: This post has been updated to include Seattle Councilmember Alex Pedersen's proposal to replace the city's water tax with a local capital gains tax.
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Monica Nickelsburg
Labor & Economy Reporter
Monica Nickelsburg is an economy reporter covering labor issues, the changing nature of work, the rise and fall of industries, technology trends and workplace equity. She has extensive experience covering Amazon, Microsoft and other major players re-shaping the Seattle region.
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