Estate tax drives big Seattle firm to Scottsdale

The Business Journal of Phoenix - 12:49 PM MST Friday

Services Group of America Inc., a food service company with more than $2 billion in annual revenue, is moving its corporate headquarters from Seattle to Scottsdale.

The company is Washington state's second-largest private company, according to the Puget Sound Business Journal's Book of Lists.

The West Seattle area company, which reported approximately $2.2 billion in revenues in 2004, specializes in food service and retail food distribution and production.

The company said it employs 4,000 but according to a statement, "relatively few of the organization's 4,000 employees will be affected by the move."

A spokesman said the company is moving because of the state's high inheritance tax.

"With the Legislature and governor electing to impose the highest state inheritance tax in the nation on family-owned companies, it has left us with little choice but to move," said Gary Odegard, vice president of corporate communications, in a statement.

He said the state's 19 percent inheritance, or estate, tax is levied on family-owned company owners when they die. Arizona is phasing out the tax, he said.

The company is owned by Thomas J. Stewart, who officially changed his residency to Arizona last year.

For more: www.fsafood.com.