Utility Taxes

Per Chewelah Municipal Code 3.124, utility services billed include a tax calculated on the gross revenue of the following utility funds:

  • CMC 3.124.030(C):   Electric         6%
  • CMC 3.124.030(E):   Water          21%
  • CMC 3.124.030(F):   Sewer          21%
  • CMC 3.124.030(G):   Garbage     21%

These taxes are embedded in the utility rates.  For instance, the water utility is being taxed at a rate of 21%.  All of the rate revenue is collected in the water fund and then 21% of that revenue is transferred to the general fund.  The water rates are set to generate enough money to pay the tax.

Utility taxes are imposed upon the utility funds themselves, and not upon the individual utility customers.  For that reason, the tax is a cost of doing business, and is reflected as a line-item cost in the budget of each utility.

Utility tax revenues are unrestricted and may be used for any lawful governmental purpose.  (These tax revenues help fund general government services such as general administration, police, fire, cemetery, airport, parks, building, planning and museum).

The maximum tax rate for electric may not exceed 6%, unless approved by voters.

There is no limitation on the tax rate for water, sewer or solid waste.