Property Tax
Shoreline receives approximately 10.8% of the property taxes paid by Shoreline residents. Those taxes pay for the City's General Operations such as services provided by the Police, Public Works and Parks Departments.
Real Estate Excise Tax (REET)
The sale of real property in Washington is generally subject to real estate excise tax. This tax is imposed on the seller of the property and is generally paid to the county treasurer where the property is located. The tax rate in Shoreline is 1.78%, with 1.28% going to the State General Fund for K-12 education and public works assistance. The remaining 0.5% remains in the City of Shoreline: 0.25% is used for various capital improvements listed in the City's Capital Improvement Program and 0.25% must be used on construction, repairs or improvements of City streets, highways, sidewalks, etc.
Gambling Tax
The City of Shoreline assesses gambling taxes on gambling operations. The rates are:
- Card Games: 10% of gross receipts
- Pull Tabs: 5% of gross receipts for gambling establishments and 10% of net receipts for nonprofit establishments
- Bingo: 5% of net receipts
- Amusement Games: 2% of net receipts
The calculation of gross receipts excludes prizes. The calculation of net receipts excludes prizes and applicable expenses.
Utility Tax
Utility taxes are levied on the gross operating revenues earned by private utilities from operations within the City of Shoreline boundaries or on the City’s own utilities (stormwater). Utilities that the City taxes include stormwater, natural gas, telephone, and cable TV.
State law limits the rate of utility tax on telephone, cellular telephone, pager services, and natural gas to 6% unless voters approve a higher rate. There are no restrictions on the tax rate for stormwater or solid waste. Cable TV must not be taxed at a rate substantially different than other utilities. The City taxes all of these utilities at 6%. Click here to download a Utility Tax Return form.
Utility taxes are levied on the gross operating revenues and therefore the effective rate of the tax may be higher than the stated rate of 6% when you are comparing the utility tax charge strictly to the actual charge for service. The table below compares the 6% tax rate on gross revenues to the effective rate on the direct utility fee:
|
Effective Rates |
Rate on gross revenue |
Effective Rate on Billed Charges |
| Utility Tax: |
|
|
| Cable |
6.00% |
6.4% to 6.6% |
|
Telephone |
6.00% |
6.4% to 6.6% |
|
Cellular Phone |
6.00% |
6.4% to 6.6% |
|
Pager |
6.00% |
6.4% to 6.6% |
|
Natural Gas |
6.00% |
6.70% |
|
Solid Waste |
6.00% |
6.50% |
|
Stormwater |
6.00% |
6.00% |
Additionally the Washington Utilities and Transportation Commission allows Puget Sound Energy (PSE) to reflect the rate of the City's utility tax based on the overall impact that the assessment of City utility tax creates. For example the State utility tax and State filing fee assessment are based on the same definition of "gross business income" as the City's utility tax, and therefore PSE must pay additional State tax on the City tax revenue. Even though the additional tax is paid to the State, PSE is allowed to show it as part of the City's utility tax calculation.
On April 13, 2009, the Shoreline City Council authorized the institution of an Education and Government Access (EG) Channel Fee of $0.15 per month on Comcast and Verizon cable subscriber bills in Shoreline. In May 2009, Comcast and Verizon officially placed this new EG Channel Fee on subscriber bills.
This fee was authorized to help the City pay for the equipment used to broadcast the Education and Government Access Channels on Comcast and Verizon’s cable systems. Additionally, this fee is being used to pay for the audio and video production equipment for the Council chambers in the City’s new City Hall facility, as this equipment will be used to record, edit and produce the City Council proceedings for transmission on the City’s Government Access Channel.
If you have any questions about this newly authorized cable fee, please feel free to contact John Norris, Management Analyst, at (206) 801-2216, or jnorris@shorelinewa.gov.
Franchise Fees
The City has franchise agreements with the Comcast, Verizon, Seattle Public Utilities, and Shoreline Water District. Comcast and Verizon provide cable services to the City while Seattle Public Utilities and the Shoreline Water District provide water to the City. In exchange for these utilities using the City’s right-of-ways they pay the City a franchise fee on gross business income.
The franchise fees for Comcast and Verizon are 5% of gross revenues, as federal law limits the franchise fee to 5%.
The franchise fee for Seattle Public Utilities and the Shoreline Water District are 6%.
Like utility tax, the effective rate of a franchise fee when compared to the direct utility fee charge will be higher than the rate on the gross revenues. The table below compares the fee rate on gross revenues to the effective rat on the direct utility fee:
| Effective Rates |
Rate on gross revenues |
Effective Rate on Billed Charges |
| Franchise Fees: |
|
|
| Cable |
5.00% |
6.00% |
| Water |
6.00% |
6.00% |
Utility Contract Payments The City has contractual agreements with Ronald Wastewater and Seattle City Light to receive contract payments on the utility revenues for sewer and electricity. The City receives a contract payment from Ronald Wastewater that is equal to approximately 6% of their gross revenue. Currently the City receives a contract payment from Seattle City Light equal to approximately 4.5% of the electric revenues generated in Shoreline. Effective January 1, 2009, this payment will go to approximately 6% of electric revenues.
Sales Tax
As of
April 1, 2009, the tax rate increased to 9.5% with an additional 0.5% tax on food and beverages sold in restaurants, bars and taverns. In November 2008, voters approved an increase in the sales tax rate collected by Sound Transit from 0.4% to 0.9%.
Effective January 1, 2009, the sales tax rate in the City of Shoreline was the state allowable 9.0% with an additional 0.5% tax on food and beverages sold in restaurants, bars and taverns.
For every $100 spent on retail goods, there is a sales tax of $9.00. Of that amount, $6.50 goes to Washington State, $0.85 goes to the City of Shoreline, $0.15 goes to King County, $0.90 goes to the Metro Transit District, $0.4 goes to Sound Transit (see link below), $0.10 goes to King County Criminal Justice programs and $0.10 goes to King County chemical dependency/mental health.
Effective April 1, 2008, the voter approved King County Mental Health Tax (0.1%) took effect throughout King County. This tax is used for chemical dependency and/or mental health treatment services.
Prior to April 1, 2008, the sales tax rate was 8.9% with an additional 0.5% tax on food and beverages sold in restaurants, bars and taverns.
Effective April 1, 1997, the voter-approved Regional Transit Authority (RTA) sales tax (0.4%) took effect throughout the major metropolitan areas of King, Pierce and Snohomish Counties. The money generated from the additional tax is earmarked to create a light rail and express bus system in the region. The RTA tax also increased the rental car tax rate in the affected areas by 0.8% and the motor vehicle excise tax rate by 0.3%. For more information about the RTA (now Sound Transit) visit www.soundtransit.org.
Effective Jan. 1, 1996, an additional sales tax was imposed on sales by restaurants, taverns, bars and rental car businesses operating in King County. The term "restaurants" includes but is not limited to taverns, bars, delicatessens and cafeterias. The revenue generated from King County food and beverage tax will be used toward retiring bonds sold to pay for the construction of Safeco Field Baseball Stadium. For food and beverage sales, the additional sales tax rate is 0.5% and for car rentals it is 2%.
Business and Occupation Tax
The City of Shoreline does not assess a Business and Occupation tax. Shoreline now licenses certain regulated businesses formerly licensed through King County. Examples of such businesses include adult cabarets, secondhand dealers, pawnbrokers and adult panorams. Click here to go to the City Clerk's page for more details.
More Information
For more information about taxes in the City of Shoreline, please contact Shoreline Budget Analyst Steve Oleson at soleson@shorelinewa.gov or (206) 801-2303.