--- Effective April 1, 2021 ---
State Taxes on Your Bill
Washington State imposes two taxes on public utility district customers. (For customers who live within city limits, there’s an additional tax charged by the city.)
For transparency’s sake, taxes are shown on each bill.
Why Do We Have These Taxes? What are the rates?
Washington State Public Utility Tax
Operators of certain public service businesses (such as electrical utilities) are subject to the Washington State Public Utility Tax. This tax is applied to PUD retail electric sales and services. The tax rate is 3.8734%. See RCW requirements here.
Washington State Public Utility District (PUD) Privilege Tax
The PUD pays the Washington State Public Utility District (PUD) Privilege Tax in place of property taxes. It applies to the business of operating works, plants, or facilities for the generation, distribution, and sale of electric energy. The tax rate is 2.14%. See RCW requirements here.
How Are Taxes Calculated?
- Total PUD Charges x .038734 = State Public Utility Tax
- (Total PUD Charges + State Public Utility Tax) x .0214 = State PUD Privilege Tax