Public utility districts

From the 2024 DOR Tax Exemption Study

84.36.010(1) - Public utility districts Description Real and personal property owned by public utility districts, which are municipal corporations, is exempt from property taxation. However, public utility districts must pay a privilege tax in lieu of property tax based on the electricity they generate and distribute or based on the water and/or sewer services they provide. Purpose Property of municipal corporations is exempt under the Washington Constitution. This reflects a long-standing legislative policy not to tax publicly owned property. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $37.982 $38.377 $38.778 $39.187 Local Taxes $112.346 $117.044 $121.959 $127.065 Repeal of Repealing a property tax exemption would not increase state revenues. A repeal exemption shifts the state property tax to the currently exempt taxpayers and reduces the tax burden of other taxpayers. It may decrease the local rate and possibly result in local taxing districts at their statutory maximum rate experiencing a revenue increase. A repeal of this exemption would require an amendment to Article VII of the Washington State Constitution. Potential ($ in millions): revenu