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Lacey adopts 6% cable utility tax projected to raise about $720,000 annually
Summary
The City Council adopted Ordinance 16-90 imposing a 6% utility tax on cable services to align with peer cities and generate an estimated $720,000 a year for the general fund. Council framed the tax as a discretionary, nonessential-service levy consistent with other local utility taxes.
The Lacey City Council on Dec. 16 adopted Ordinance 16-90 to impose a 6 percent utility tax on cable services, bringing the city's tax treatment of cable into alignment with comparable jurisdictions.
Shannon (Speaker 8) presented the ordinance and noted that Lacey's existing utility tax rates for other services (phone, natural gas, water, sewer, solid waste, stormwater) are already 6 percent. The staff recommendation noted the proposed tax would increase general fund revenue by about $720,000 annually.
During debate Council member (Speaker 3) said cable service is a discretionary household expense (unlike water or sewer) and voiced support. The mayor and other council members said the tax addresses long-standing revenue gaps and is consistent with other jurisdictions. Council member (Speaker 13) moved to adopt Ordinance 16-90; the motion was seconded and the ordinance passed unanimously.
City staff said the ordinance also includes minor technical code revisions (a definition of cable service and consolidation of utility-business language) and will be published with a summary for adoption. The new tax will be implemented by city finance staff per the effective date in the ordinance text.
