The City may tax utilities such as telephone, natural gas, water, storm water, garbage collection and electricity.  The Fairwood Feasibility Study proposes a budget including a utility tax of 1.1% of all the utility fees you pay.  The tax is imposed on each bill, and collected by the utility for the city. 

Renton imposes a utility tax at the rate of 6% on all utilities.  Persons who rent their home, are  particularly impacted by the higher utility tax.  Renters should use the tax calculator to see to compare Total Utility Taxes (ignor the real property tax). 

One percent of the purchase price of goods and services that are subject to sales tax is currently allocated to King County.  When Fairwood incorporates, 85% of what the county would have received is now allocated to the City.  Although Fairwood has a modest commercial base, about $1,147,000 in sales tax revenue will be recieved annually by the City of Fairwood.  A substantial annual rate of growth in sales tax revenue is expected.  

Sales tax simplification is expected to change sales tax allocation.  Currently, the tax is calculated based on the rates at the source of the sale and allocate the tax revenue to the source jurisdiction.  When enacted, sales tax simplification will base the calculation on the destination (residence of the purchaser) and allocate the tax revenue to the destination jurisdiction.  Thus when you buy home furnishings in Tukwila and have the goods delivered to Fairwood, the City of Fairwood will receive the tax revenue.  (See "Sales Tax Streamlining", page 100-102 in the Fairwood Feasibility Study, by Berk & Associates.) 

The City will have additional revenue sources:

• An allocation from the sales tax for Criminal Justice is revenue to the City.
• An allocation is received from liquor sales reciepts.
• An allocation is received from Motor Vehicle Fuel (Gas) Tax
• The City will likely participate and receive revenue from the King County Community Development Block Grant
• Building permit revenue will likely exceed the cost of administration
• Modest gambling tax revenue may be received from existing sources.
• Surface water Management fees
• Real Estate Excise Taxes
• Bonds
• State and Federal Grants
• Transportation Impact Fees

Renton imposes additional taxes.  One tax of particular concern to small business is their business license tax, which imposes a tax of $55.00 per employee per year on each business.