Taxes in Shoreline

Property Tax
Shoreline receives approximately 10.8% of the property taxes paid by Shoreline residents. Those taxes pay for the City's General Operations such as services provided by the Police, Public Works and Parks Departments.

Low income Seniors over 61, and persons with disabilities may be able to lower their current property tax bills. The King County Assessor has full details on this program.

State law governs exemptions or deferrals of property taxes for qualified senior citizens or persons with disabilities. Programs currently available are described below.

Senior Citizens/Disabled Exemption
If you are a senior citizen or disabled you can qualify for a property tax exemption if:

• If your total annual disposable household income is $35,000 or less and you own and occupy a house, mobile home, condo or co-op, and one of the following is true you qualify to be exempt from all excess property tax levies:
  • you are 61 years of age of older or
  • you are retired because of physical disability or
  • you are a veteran with 100% service-connected disability or
  • you are a widow or widower at least 57 years of age whose spouse or state registered domestic partner had an exemption at the time of death

Excess levies are voter approved levies that are not part of a “regular” levy. Examples include a school district’s maintenance and operations levy and voter-approved capital levies, such as the City’s Park Bond.

• If a person who otherwise qualifies under this section and has a combined disposable income of $35,000 or less but greater than $25,000 is exempt from all regular property taxes on the greater of $50,000 or 35% of the valuation of his or her residence, but not to exceed $70,000 of the valuation of his or her residence; or
  
• A person who otherwise qualifies under this section and has a combined disposable income of $25,000 or less is exempt from all regular property taxes on the greater of $60,000 or 60% of the valuation of his or her residence.

Senior Citizen/Disabled Deferral
If you are a senior citizen or disabled you may qualify for a deferral if:

• Your household disposable income is $40,000 or less and one of the following is true:
  • you are at least 60 years old when you file or 
  • you are retired because of a disability

Deferred taxes become a lien against the property and must be settled when the property is sold.

Real Estate Excise Tax (REET)
The sale of real property in Washington is generally subject to real estate excise tax. This tax is imposed on the seller of the property and is generally paid to the county treasurer where the property is located. The tax rate in Shoreline is 1.78%, with 1.28% going to the State General Fund for K-12 education and public works assistance. The remaining 0.5% remains in the City of Shoreline: 0.25% is used for various capital improvements listed in the City's Capital Improvement Program and 0.25% must be used on construction, repairs or improvements of City streets, highways, sidewalks, etc.

Gambling Tax
2013 Gambling Tax Return Form

The City of Shoreline assesses gambling taxes on gambling operations. The rates are:

• Card Games: 10% of gross receipts
• Pull Tabs: 5% of gross receipts for gambling establishments and 10% of net receipts for nonprofit establishments
• Bingo: 5% of net receipts
• Amusement Games: 2% of net receipts

The calculation of gross receipts excludes prizes. The calculation of net receipts excludes prizes and applicable expenses.

Utility Tax
Utility taxes are levied on the gross operating revenues earned by private utilities from operations within the City of Shoreline boundaries or on the City’s own utilities (stormwater). Utilities that the City taxes include stormwater, natural gas, telephone, and cable television.

State law limits the rate of utility tax on telephone, cellular telephone, pager services, and natural gas to 6% unless voters approve a higher rate. There are no restrictions on the tax rate for stormwater or solid waste. Cable TV must not be taxed at a rate substantially different than other utilities. The City taxes all of these utilities at 6%. Click here to download a Utility Tax Return form.

Utility taxes are levied on the gross operating revenues and therefore the effective rate of the tax may be higher than the stated rate of 6% when you are comparing the utility tax charge strictly to the actual charge for service. The table below compares the 6% tax rate on gross revenues to the effective rate on the direct utility fee:

Additionally the Washington Utilities and Transportation Commission allows Puget Sound Energy (PSE) to reflect the rate of the City's utility tax based on the overall impact that the assessment of City utility tax creates. For example the State utility tax and State filing fee assessment are based on the same definition of "gross business income" as the City's utility tax, and therefore PSE must pay additional State tax on the City tax revenue. Even though the additional tax is paid to the State, PSE is allowed to show it as part of the City's utility tax calculation.

Cable Television Education and Government Access Fee 
On April 13, 2009, the Shoreline City Council authorized the institution of an Education and Government Access (EG) Channel Fee of $0.15 per month on Comcast and Frontier cable subscriber bills in Shoreline. In May 2009, Comcast and Frontier officially placed this new EG Channel Fee on subscriber bills.

This fee was authorized to help the City pay for the equipment used to broadcast the Education and Government Access Channels on Comcast and Frontier’s cable systems. Additionally, this fee is being used to pay for the audio and video production equipment for the City Council chambers in City Hall, as this equipment will be used to record, edit and produce the City Council proceedings for transmission on the City’s Government Access Channel.

If you have any questions about this cable fee, please feel free to contact John Norris, Management Analyst, at (206) 801-2216, or jnorris@shorelinewa.gov.

Franchise Fees 
Although the City has franchise agreements will almost all the utility providers that use the City's rights-of-way to operate and maintain their utility systems, only certain utility providers pay franchise fees for this use.  In exchange for using the City's rights-of-way, Comcast Cable, Frontier Cable, Seattle Public Utilities, and Shoreline Water District pay the City a franchise fee on gross revenue.  Comcast and Frontier provide cable television services to the City, while Seattle Public Utilities and the Shoreline Water District provide water services to the City.

The franchise fee for Comcast and Frontier are 5% of gross revenues, as federal law limits cable franchise fees to this percentage.

The franchise fee for Seattle Public Utilities and the Shoreline Water District are 6%.

Like utility tax, the effective rate of a franchise fee when compared to the direct utility fee charge will be higher than the rate on the gross revenues. The table below compares the fee rate on gross revenues to the effective rat on the direct utility fee:

Utility Contract Payments
The City has contractual agreements with Ronald Wastewater District and Seattle City Light to receive contract payments on the utility revenues for sewer and electricity.  The City receives a contract payment from Ronald Wastewater District and Seattle City Light that is equal to approximately 6% of gross sewer and electric revenues respectively. 
 
Sales Tax
Local Sales and Use Tax Rate: 9.5%.

Effective October 1, 2011, taxes imposed to pay the construction bonds for Safeco Field expired (King County food and beverage tax of 0.5% and King County special car rental tax of 2%).

As of April 1, 2009, the tax rate increased to 9.5% with an additional 0.5% tax on food and beverages sold in restaurants, bars and taverns. In November 2008, voters approved an increase in the sales tax rate collected by Sound Transit from 0.4% to 0.9%.

Effective January 1, 2009, the sales tax rate in the City of Shoreline was the state allowable 9.0% with an additional 0.5% tax on food and beverages sold in restaurants, bars and taverns.
For every $100 spent on retail goods, there is a sales tax of $9.00. Of that amount, $6.50 goes to Washington State, $0.85 goes to the City of Shoreline, $0.15 goes to King County, $0.90 goes to the Metro Transit District, $0.4 goes to Sound Transit (see link below), $0.10 goes to King County Criminal Justice programs and $0.10 goes to King County chemical dependency/mental health.

Effective April 1, 2008, the voter approved King County Mental Health Tax (0.1%) took effect throughout King County. This tax is used for chemical dependency and/or mental health treatment services. Prior to April 1, 2008, the sales tax rate was 8.9% with an additional 0.5% tax on food and beverages sold in restaurants, bars and taverns. 

Effective April 1, 1997, the voter-approved Regional Transit Authority (RTA) sales tax (0.4%) took effect throughout the major metropolitan areas of King, Pierce and Snohomish Counties. The money generated from the additional tax is earmarked to create a light rail and express bus system in the region. The RTA tax also increased the rental car tax rate in the affected areas by 0.8% and the motor vehicle excise tax rate by 0.3%. For more information about the RTA (now Sound Transit) visit www.soundtransit.org.

Effective Jan. 1, 1996, an additional sales tax was imposed on sales by restaurants, taverns, bars and rental car businesses operating in King County. The term "restaurants" includes but is not limited to taverns, bars, delicatessens and cafeterias. The revenue generated from King County food and beverage tax will be used toward retiring bonds sold to pay for the construction of Safeco Field Baseball Stadium. For food and beverage sales, the additional sales tax rate is 0.5% and for car rentals it is 2%.

Business and Occupation Tax
The City of Shoreline does not assess a Business and Occupation tax. Shoreline now licenses certain regulated businesses formerly licensed through King County. Examples of such businesses include adult cabarets, secondhand dealers, pawnbrokers and adult panorams. Click here to go to the City Clerk's page for more details.

More Information
For more information about taxes in the City of Shoreline, please contact Patti Rader, Finance Manager at prader@shorelinewa.gov or (206) 801-2311.