EVERETT, APRIL 2: The City of Everett is considering implementing a new tax on city utilities that would affect thousands of customers throughout Snohomish County. The utility tax would amount to a 6% increase of a fee customers are already paying for water and sewer service. Just last year, Lynnwood and Edmonds voted to raise their utility tax rates and now Everett seems to be considering the same idea for the sake of the budget deficit.
Currently, the city imposes a 6% “payment in lieu of taxes” fee . Payments in Lieu of Taxes (PILT) are Federal payments that help local governments offset losses in property taxes due to the existence of non-taxable Federal lands within their boundaries. The law was originated in October 1976, and then rewritten and amended in1982. The law recognizes the financial impact of the inability of local governments to collect property taxes on federally owned land.
These PILT payments help local governments carry out such vital services as firefighting and police protection, construction of public schools and roads, and search-and-rescue operations.
The current 6% fee would be replaced by a 12% total utility tax instead on water and sewer for city of Everett customers as well as other cities in Snohomish county, which would equate to approximately $10.74 per month per customer.
In an email interview, it was confirmed that the current 6% (PILT) on utilities has been the only city tax on utilities since 1983. This would be the first city utility tax increase in 43 years, according to Mike Baily City Finance Director with the city of Everett.
“The tax would be embedded with the water costs and then cities outside of Everett can make their own plan for their utility taxes” according to Baily.
The plan is in consideration in response to raise more revenue for the city and close a potential $14 million dollar budget deficit for 2027.
The Everett Post will keep you updated as we find out more on this and if/when this may go into effect.
For more details on city of Everett and their utility taxes you can go to Water Services | Everett, WA – Official Website.
