Finance Department > Budgeting Division
• Property Taxes
The Kitsap County Treasurer collects the property tax levied by the City of Poulsbo and remits it to the City on a monthly basis. The property tax is recorded in the City's General Fund.
When the City sets it's property tax levy, it is the gross amount of dollars the City is requesting. Rates are calculated by the County Assessor's Office. There are two limiting factors which may affect the amount of property taxes the City will receive.
- 1% Increase (This equates to about $21,000 for the City of Poulsbo)
- By state law, the City is allowed to Levy 1% above the previous highest allowable levy and then add to this amount for new construction and annexation.
- Levy Rate ($1.60 but can be set higher based on fire and library district's rates)
- A maximum rate could force the levy to be capped at less than the 1% increase. The rate is calculated by dividing the levy amount by total assessed value/per 1,000. The maximum rate the City of Poulsbo can collect is $1.60 since both fire and library districts are located in the City. The maximum rate can be increased if the fire and/or library district cannot take their full amounts and it still falls under the 1% increase.
• Sales Tax
The State of Washington collects the 8.7% sales tax paid to vendors doing business within Poulsbo city limits and distributes the City's portion (1%) back to the City on a monthly basis. The sales tax is recorded in the City's General Fund and is the largest funding source for this fund.
Sales tax is the City's largest revenue source and although it is a healthy source of income for the City, the City has historically been very conservative in its estimation - never estimating more sales tax revenue than it received the previous year.
• Utility Tax
Utility Taxes are taxes applied to utilities providing services in the City including City-owned and privately owned utilities. On the whole, these taxes tend to be stable from year to year. The rates are reviewed as part of the budget discussion and process.
The utility rates for 2016** are at 9% for:
**The City is currently undergoing the 2017-2018 Budget process and it is anticipated the utility rates for Water and Sewer will be lowered to 6% beginning in 2017.
The following are the different types of utility tax the City collects at a rate
• Electric Tax
• Natural Gas Tax
• Telephone Tax
• Solid Waste Utility Tax
• Storm Drain Utility Tax
• Cable Services
Click here to view the Poulsbo Municipal Code
Click here to download the Utility Tax Remittance Form (PDF)
• Other Taxes
The remaining taxes are composed of various miscellaneous taxes that include admissions, excise, leasehold, and gambling taxes.
The largest of these, admission tax, is a 5% tax on qualifying admission charges, which the City began collecting in 1999. A 10-plex theatre in the City provides the majority of this tax revenue.
Leasehold taxes are taxes paid to Washington State on government owned land that is being leased or rented. A portion of the tax on these types of properties is disbursed to the City.
Excise tax revenue is a tax on the City's solid waste activities. The tax is charged by Washington State's Department of Revenue.
Gambling taxes are irregular in a community the size of Poulsbo. They tend to be an unstable source and their receipts are, therefore, forecast conservatively.
• Hotel/Motel (Lodging) Tax