Sammamish City Council adopts 6% utility tax with increased low income rebate

Sammamish City Council has taken a significant step towards addressing its budgetary challenges by approving a 6% utility tax and a 6% use tax on brokered natural gas during their recent meeting on March 18, 2025. This decision aims to secure essential services and maintain public safety amid rising costs and economic uncertainty faced by residents.

The council's deliberation highlighted the necessity of the tax, which has been a topic of discussion for over a decade. Council members emphasized that the city must adapt to financial realities, as previous administrations opted against implementing such taxes, leading to a structural imbalance in the budget. Mayor's remarks underscored the importance of transparency and community engagement, noting that the council has kept public hearings open for a month to gather resident feedback.

In response to concerns about the tax's impact on low-income residents, Deputy Mayor Lam proposed an amendment to increase the annual low-income rebate from $100 to $200. This amendment was passed unanimously, reflecting the council's commitment to mitigating the tax's regressive nature. Council members expressed the need to monitor the situation closely and adjust the rebate as necessary based on real data and community feedback.

The council's discussions also touched on the broader implications of the tax, including the need for sustainable revenue sources to support infrastructure and community services. Council member Stewart pointed out the challenges of maintaining a suburban city with limited revenue streams, emphasizing the importance of balancing fiscal responsibility with the needs of residents.

As Sammamish moves forward with this new tax structure, the council remains focused on ensuring that essential services are funded while also providing support for those who may be most affected by the changes. The city is committed to ongoing dialogue with residents to adapt policies as needed, reinforcing the collaborative spirit of the community in navigating these financial challenges together.