Bezos Sells $2 Billion More Amazon Shares Amid Seattle to Miami Move

Bezos

Jeff Bezos, the billionaire founder of Amazon.com Inc., has swiftly capitalized on the company’s recent surge in stock value by selling off more of his shares. This move comes shortly after his announcement of relocating from Seattle to tax-friendly Miami.

Also read: Billionaire Jeff Bezos Ditches Rainy Seattle for Sunny Florida – Here’s Why

In a series of regulatory filings, it was disclosed that Bezos disposed of 24 million Amazon shares, amounting to over $4 billion, within just four trading days. This sale follows his earlier revelation of plans to sell up to 50 million shares.

While Bezos has not explicitly stated the reasons behind these transactions, the timing aligns with significant personal decisions. His announcement of moving to Miami from the Seattle area came on November 2, closely followed by the adoption of a 10(b)5-1 trading plan on November 8.

One key factor influencing Bezos’s relocation could be the disparity in tax regulations between Washington state and Florida. Washington implemented a 7% capital gains tax in 2022, a levy absent in Florida. This move potentially translates to substantial tax savings for Bezos, estimated at $288 million thus far. Given Bezos’s long-term ownership of Amazon shares since its inception, the majority of their value is classified as capital gains.

Amazon’s shares have seen a remarkable uptick of 13% since the beginning of the year, as reported in the latest filings. However, they experienced a slight dip of 2.2% to $168.64 on Tuesday, the day Bezos concluded his latest sales.

Representatives for both Amazon and Bezos declined to offer comments on these developments.

The potential tax revenue loss of $288 million adds to the ongoing debate surrounding Washington state’s capital gains tax. Last year, the state garnered $855 million from this tax, with a significant portion contributed by a small number of high-income individuals. Criticism against the tax has emerged, with notable figures like billionaire Ken Fisher expressing disapproval and even relocation plans to tax-friendlier states like Texas. A prospective ballot initiative in November might seek to overturn the levy altogether.

Stay tuned to ImpactWealth.org for further updates on this evolving story and its implications on wealth management and tax policies.

Kaleem Khan

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