Regulatory Taxes
Property Taxes
Property Taxes play an essential role in financing operations of the City of Poulsbo, accounting for about 70% of the General Fund revenue. In 2005, City of Poulsbo property owners will pay approximately $1.4 million in property taxes. There are two types of property taxes collected by the City; levied (regular) and voter approved.
The levied portion of the property tax may be used for any purpose the City deems necessary. As in most cities, the property tax levy supports the General Fund - the general operations of the City. The City Council has set a policy for 2005 that 29% be allocated for street maintenance, 24% for capital street projects and 4% for park capital projects. The remaining 43% will be used in the General Fund. None of the property taxes collected provide revenue for City utilities since each utility is an enterprise fund, which must be self-supporting through the rates collected.
The second type of property taxes collected by the city is voter approved. Voter approved levies are for purposes that have been specifically identified in an ordinance and voted on by the residents. In 1988 the voters approved $1,725,000 in bonds to finance the City's half of the property acquisition and construction of a new fire station. Kitsap County Fire District 18 funded the other half of the property and building. This is the City's only voted debt. Funding for the debt is provided through property tax levied by the City. In 1997, the City took advantage of low interest rates and refinanced the debt resulting in a savings of approximately $120,000. The 20-year debt will be paid off in January 2008. Although, through voter approval, the Fire Department was annexed to the County, the City's obligation to this debt does not change. The City will continue to levy and receive property taxes to pay the bonds.
Sales Tax
Click here to see the current Sales Tax Report
The sales and use tax revenue, in contrast to property tax, is a highly unstable revenue source and is, therefore, very difficult to predict. The City has experienced a continual increase in sales tax, producing the largest single source of revenue. The current sales tax rate charged on retail sales taking place within the City limits of Poulsbo is 8.6%, but only 1% of the 8.6% is City tax. This is an increase over 2003 by .1% because the voters approved .1% for the Emergency Communications Center. The total sales tax collected on sales taking place within the City is distributed as follows:
| Description | Percent | How much out of $100 purchase? |
| State Portion | 6.5% | $6.50 |
| Local Portion | ||
| --City of Poulsbo | 0.85% | $0.85 |
| --Kitsap County | 0.15% | $0.15 |
| --Criminal Justice | 0.1% | $0.10 |
| --Kitsap County Jail Expansion | 0.1% | $0.10 |
| --Kitsap County Emergency Communications | 0.1% | $0.10 |
| --Kitsap County Transit | 0.8% | $0.80 |
| Total | 8.60% | $8.60 |
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 following are the different types of utility tax the City collects at a rate of 6%:
Electric Tax
Natural Gas Tax
Telephone Tax
Water Utility Tax
Sewer Utility Tax
Solid Waste Utility Tax
Storm Drain Utility Tax
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.
