This is mostly a progress report on what new taxing authority cities and counties (and transit districts) might be getting from the Legislature this session.
The House Finance Committee on Friday approved on a 5-3 vote a measure that would let King County impose an utility tax of up to 6 percent on all utilities.
Senate Bill 5433 also would let the other 38 counties (including Pierce) levy utilities taxes in unincorporated areas, too, but with more limitations. Those counties could not tax natural gas and could tax electric service a maximum of only 1 percent. It’s a 6 percent limit on water, sewer, telephone and cable.
And those taxes could be imposed on a councilmanic vote. That is, no public vote, just public hearings and then the county council or county commissioners could vote to impose the utility tax.
On the city front, they basically would get more flexibility in how they can use their existing taxes (or taxing authority) — the sales taxes for public safety and mental health-chemical dependency programs.
They also get authority to levy utility taxes on the water and sewer districts inside their cities. Apparently, there are about 47 cities that get their sewer and-or water from a separate utility, 20 of which are in King County. Like Lakehaven provides service to customers inside Federal Way’s city limits. So, if the bill passes, the Federal Way City Council could vote to put a utility tax on Lakehaven’s service.
Edgewood and Milton in Pierce County are among those cities. So are Auburn, Black Diamond, Covington, Des Moines, Kent, Maple Valley, Pacific and Normandy Park.
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