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District News

Posted on: January 1, 2019

District Appeals Tax Decision (Issue #179)

179_District_Appeals_Excise_Tax_Descision

Earlier this year, the District, along with the Highline Water District and Midway Sewer District, filed suit in King County Superior Court challenging the legality of a tax imposed by the City of Federal Way on revenues received from the provision of water and sewer service within the boundaries of Federal Way.

On October 30th, King County Superior Court Judge John McHale ruled that the City’s tax on revenues from customers billed for water and sewer service was lawful. In November, Lakehaven, Midway and Highline filed an appeal of Judge McHale’s ruling with the Washington Supreme Court.

It is anticipated that the Supreme Court will decide whether to accept direct review sometime in the first half of 2019.  If direct review is declined by the Supreme Court, the matter will go to Division I of the Court of Appeals.

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