Utility Tax

City of Sequim Tax on Residents' Utility Bills

The state legislature allows cities to establish a utility tax to generate revenues for general operating costs, such as police, streets, and code compliance. As such, the City of Sequim imposes a utility tax on any business or public entity providing utility services within Sequim city limits.

The tax is a percentage of gross receipts and imposed directly on the utility, which is solely responsible for the tax. Most natural gas, garbage, electric, and telephone utility companies in the state pass these taxes on to their customers. Although it is not a tax on the customer, many utilities list the tax as a separate item on the utility bill since it is part of their business costs.