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Anacortes council adopts 2% utility tax increase to 9%; members ask for study of tiering

Anacortes City Council · November 18, 2025

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Summary

Council voted to raise the city utility tax from 7% to 9% for water customers (residential, commercial, refineries) and directed staff to explore whether tiered rates or customer-class distinctions are legally feasible via outside counsel.

At the Nov. 17 meeting the council adopted Ordinance 5011, increasing the city utility tax from 7% to 9% for water customers, including residential, commercial and refinery customers. Finance Director Steve Hoagland presented the ordinance and answered questions about how the tax is collected and remitted to the general fund.

Several council members expressed support for the rate increase while also urging follow-up analysis. Councilmember Fantini said he supports the increase but hopes staff can pursue a tiered structure and look at taxing water purveyors; Hoagland advised that pursuing different rates by customer class would require outside legal review. Councilmember Milton moved to adopt the ordinance and the motion passed in a roll‑call vote.

Hoagland and council agreed to return with legal analysis if council wants to pursue a differentiated rate structure for certain customer classes (for example, refinery versus residential). The ordinance will take effect per the city's standard ordinance schedule.