Property Tax

In 2009, Clyde Hill property owners will pay over $11.5 million in property taxes to nine different entities.  Although property taxes are the City's main source of operating revenue, Clyde Hill will receive less than 8% of the total amount residents pay to fund all local government services (i.e. police, fire, streets, storm sewers, etc).  Many residents have the impression that most of their property tax goes to pay for City services…This is not true.  In fact, Clyde Hill has the 2nd lowest city property tax rate of all the 39 King County cities/towns.

The property tax is probably the most widely misunderstood element of the City’s finances.  In response to the confusion, a “special edition” of the City’s Newsletter was developed in 2002.

  Property Tax “Special Edition” Newsletter 

Specific and historical information related to the City’s property tax can be viewed by clicking:

Property Tax Information 

Sales Tax

The City of Clyde Hill receives less than 1% (.85%) of the 9.0% sales tax paid for eligible goods and services purchased in Clyde Hill.  By far the most important sales tax revenue source for the City comes from contractors building new homes and major remodeling projects.  Other important sales tax contributors for Clyde Hill include automobile leasing, landscaping, sales at the local gas station and Tully’s.

To avoid errors, please let your car dealership or service provider know that you live in the City of Clyde Hill (not Bellevue) and your sales tax code is 1708.

The following table shows how your sales tax is distributed for common goods and services (construction & remodeling activity, landscaping, auto leases, etc.) purchased in Clyde Hill:

When you have goods delivered or services performed at your home (construction work, landscaping, appliance deliveries...) please ask the merchant to write the City of Clyde Hill Sales Tax Number 1708 on their copy of your invoice.  When companies report their sales tax collections to the Department of Revenue, a portion of the sales tax will be returned to the City and used for local projects and local services.  Because the City shares a zip code number, the sales tax you pay often goes to Bellevue and is not used locally in Clyde Hill.

Utility Taxes and Franchise Fees

Because the City funds only 28% of its operations from property taxes, it relies on utility taxes and franchise fees as a primary operating revenue source.  These taxes and fees are imposed on companies that have their facilities located in or use the City’s rights-of-way.  The companies are required to pay these fees in order to do business in the community and use the City's rights-of-ways for their business.  It is up to them whether or not they pass those costs on to their customers.

Not all utilities are taxed the same.  The State placed caps on a few of the utility tax rates.  Clyde Hill utilities are taxed in the following way:

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