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Spokane Fair Tax
The Initiative has been approved for signatures.
Get it here
Spokane Utility Tax Limitation Initiative
Spokane Utility Tax Limitation Initiative
Please return signed petitions to:
Spokane Fair Tax
c/o Steve Eugster
2418 W Pacific Ave
Spokane, WA 99201-6422
If you have questions send an email message to me:
The Spokane Fair Tax Initiative is and effort to amend the Spokane City Charter to limit the amount of utility tax the City of Spokane can impose on the utility services it provides -- water, sewer, and garbage collection and disposal.
The effective tax, at the moment, is an incredible 25%. That is, every dollar spent includes a tax of 25 cents. The form of the initiative will be approved in the coming weeks by the Spokane City Council. When the snow melts and we have a sunny day or two I will start gathering signatures. I done this before.
In the next few weeks a petition for a limitation on Spokane utility taxes will be approved for signature collection. Signatures will be sought over the next several months. The basic point of the petition is to place a limit on the amount of tax the City of Spokane collects on its utility services. Taxes are not collected on necessities such as food, why should taxes be collected on something just as necessary as a loaf of bread --- water, sewer, garbage collection -- in excess of a reasonable amount? A 25% tax is -- simply put -- unjust.
As soon as the petition form is approved the petition will be available here. Gradually, the signature gathering effort will be begin.
This may seem a trivial matter to those of you who take home over $50,000 per year, but the fact is a 25% tax on water, sewer, garbage, storm water etc., is an unfair tax. No other city charges as much as does Spokane for utility taxes. Why? Because other cities cause businesses to pay their fair share of taxes by reason of a local business & occupation tax.
Frequently Asked QuestionsThe City of Spokane imposes a tax of 25% on all City utility services. You cannot live in the city unless utility services are used by the location where you live and the tax of 25% is paid on every Dollar of service.
How much tax do you pay for food, drugs and the like? 0%
No Taxes.
Why should you pay 25% on things just and necessary and non-discretional as food and drugs?
1. The tax I pay for my Avista (electric and gas) is about 6% The tax I pay for my phone bill is about 6%. Why is this?
These utilities are "regulated utilities" under the law of the state of Washington. The legislature has placed a limit of 6% on gross receipts taxes for regulated utilities.
2. But when I look at my bills for these utilities I see I pay more than 6%, what gives?
Here is what happens. First, the tax is passed on to the customer by the utility company.
Second, the government puts a 6% tax on the tax -- it includes the tax collected as revenue and then taxes the tax.
Are you with me so far?
Now, the utility company passes that tax on to you, the customer.
And then, that revenue is included and taxed and so on.
The utility and the government allow this "grossing up" to stop at about the third or fourth time the tax is included and re-included in income that is taxed.
3. This is very complicated and confusing. So are you saying the government finds a way to let the utility collect more than a 6% tax from me?
Sadly, yes.
4. Are you really sure?
Yes.
5. OK, I believe you, now tell me about what the City of Spokane does?
I hope you are ready. You are not going to like it.
6. Go on, I am holding my chair.
7. How much tax does the City of Spokane charge on "its utilities" -- sewer, water, garbage collection?
I said you are not going to like it. 20%
8. How can they do that?
The city utilities are not regulated utilities. The city can charge as much as it wants.
9. So you telling me the city charges 20% on its utilities?
Yes.
10. And, are you saying the city "grosses up" the tax and as a result the tax end up being 25% on every dollar of services I purchase.
Yes.