HomeMy WebLinkAbout034 14C % cC
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Distribution of Annual PUD
Privilege Tax Revenues
STATE OF WASHINGTON
County of Jefferson
RESOLUTION N034 -14
WHEREAS, a PUD (Public Utility District) is subject to an excise tax in lieu of property
taxes according to RCW 54.28.020; and
WHEREAS, the state collects these funds and distributes them back to the counties as
PUD Privilege tax; and
WHEREAS, per RCW 54.28.090, the legislative authority should direct the county treasurer
as to the distribution of these funds; and
WHEREAS, per RCW 54.28.090, an amount not less than three - fourths of one percent
(0.75 %) of the gross revenues obtained by the PUD district from the sale of electric energy within
any incorporated city or town must be remitted to such city or town; and
WHEREAS, information furnished by the PUD district to the county legislative authority is
the basis for determination of the amount to be paid to such cities or towns; and
WHEREAS, Jefferson County Treasurer Judi Morris surveyed nine counties in Washington
State that receive PUD Privilege taxes from public utility districts with electric utilities, and found
that eight of the nine counties allocate the tax by allocating to each city three - fourths of one
percent (0.75 %) of the gross electric energy revenues obtained by the PUD within that city, and
allocate the remaining portion of the PUD Privilege tax to each county's current expense (general)
fund; and the County Treasurer has recommended following this common practice;
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners to
distribute three - fourths of one percent (0.75 %) of the gross revenues obtained by the PUD district
from the sale of electric energy within the City of Port Townsend to the City of Port Townsend, with
the remainder of the tax to be distributed to the County General Fund; and
BE IT FURTHER RESOLVED, that as authorized by state statute, the Board of County
Commissioners hereby directs the Jefferson County Treasurer to distribute the PUD Privilege Tax
accordin�'thp "ula shown above.
A i4 ND ADOPTED this :day of July, 2014
1 : V
ATTEST,,
Clerk of thesfrd
JEFFERSON COUNTY
BOARD OF C MISSIONERS
JohnlAtistm, air"
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
CONSENT AGENDA REQUEST
TO: Board of Commissioners
FROM: Frank Gifford, Central Services Director
DATE: July 21, 2014
RE: PUD Privilege tax distribution
STATEMENT OF ISSUE:
The County receives PUD Privilege Tax each year for payment in lieu of taxes from PUD
Districts engaging in the business of operating plants or facilities used in the generation and sale
of electric energy in Jefferson County. These taxes are paid by the PUD to the state and the state
distributes them to the County. Prior to 2014, the County received taxes from Grays, Mason and
Clallam for their facilities located in Jefferson County. With the creation of the Jefferson County
PUD electrical operation, starting in 2014 there is an additional amount received annually from
Jefferson County PUD 41. The attached resolution is provide direction to the County Treasurer
as to the distribution of these funds as required by RCW 54.28.090.
ANALYSIS:
The County has received a total of $266,576 in PUD Privilege tax for 2014. Of that total,
$28,819 is from taxes collected from PUDs in Grays, Mason and Clallam Counties. The
remaining $237,758 is the tax from Jefferson County PUD.
According to RCW 54.28.090, the county legislative body should direct the treasurer as to how
the tax should be distributed. This RCW also states that the County must distribute at the
minimum, 0.75% of the gross revenues obtained by a district from the sale of electricity within
the city or town.
This resolution authorizes the allocation of 0.75% of the gross revenue to be distributed to the
City of Port Townsend with the remainder of the tax distributed to the General Fund. In a poll of
nine counties conducted by the County Treasurer, eight of the nine counties allocated their PUD
Privilege tax using this distribution method.
FISCAL IMPACT:
The distribution for 2014 would be as follows:
$ 41,119 New Revenue to the City of Port Townsend
(0.75% times $5,482,559 of gross electric revenue generated by City)
225,457 County distribution — to General Fund
$266,576 Total Distribution
RECOMMENDATION:
Approve the attached proposed resolution directing the County Treasurer to distribute the PUD
privilege tax to City of Port Townsend in the amount of .0.75% of the gross electricity sales in
the City, with the remainder of the tax to be distributed to the County General Fund.
REVIEWED BY:
E
County A strator')
Date