Utility Tax

B5.4 Utility tax
Develop a local utility charge to fund clean energy projects

Private utility taxes
RCW 35.21.870 limits the utility tax on electricity, natural gas, and telephone service to 6%, unless voters approve a higher level.
Olympia’s 9% tax includes a 3% surcharge for parks and pathways approved by voters in 2004. Its tax for cable TV service is still 6%.
Tumwater taxes the private utilities at 6%. (Increasing this by 1% would raise roughly $500,000.)
Lacey taxes the private utilities at 6%.

Boulder voters passed a tax on electricity to fund local climate action, and then extended it. Activists in Denver began collecting signatures in May 2019 to put a tax on energy use by businesses on the ballot there; they were unsuccessful; the City Council and the Mayor debated adopting a similar proposal, but compromised on some small steps and studying a tax further.

Public utility taxes
Taxes on public utilities may be raised by the jurisdictions without voters’ approval.

Olympia taxes drinking water at 12%, and its other municipal utilities at 10%.
Tumwater taxes its municipal utilities at 6%. (Increasing this by 1% would raise roughly $150,000.)
I think Lacey taxes drinking water at 12.04%, and its other municipal utilities at 6%.
Thurston County only supplies water and sewer to about 800 residents.

Franchise fees
RCW 35.21.860 limits franchise fees to recovering expenses “directly related to receiving and approving a permit, license, and franchise, to inspecting plans and construction, or to the preparation of environmental impact statements.

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