Utility Tax Change for 2017
Starting in 2017, the City’s utility tax of 6% on gross income will apply to all water and sewer systems which are owned or managed by a municipal corporation or a for-profit entity. The City Council adopted an ordinance in November 2016, effective January 2017, which amended the Bainbridge Island municipal code.
The tax does not apply to not-for-profit water systems, or to individual wells.
Throughout 2016, the City Council and the City’s administration had numerous discussions during Council meetings regarding the possible extension of the City’s utility tax to additional entities. A public hearing was also held on the matter on September 27, 2016. Ultimately, the Council adopted Ordinance No. 2016-19, which extends the City’s utility tax to all water, sewer, and storm water utilities owned or managed by a municipal corporation or a for-profit entity. The tax is due quarterly, with the first payment due to the City by April 30, 2017, for the first quarter of 2017.