2013 Annual Budget - City of Bremerton

exempt source in the fourth quarter of 2008 resulting
in a 60% drop in natural gas utility tax
receipts. In totality, the budget anticipates
$4.52M from utility taxes, a decrease of 1.8%
over the prior year. The 2013 budget includes a
slight increase in telephone receipts (4%) and
decreases in electricity (-2.7%), natural gas (-
13%), and cable (-3.9%) based on historical averages.
Solid waste utility tax remains unchanged
at $450k.
Utility Taxes
Am ounts in thousands
$3,200
$3,000
$2,800
$2,600
$2,400
Business & Occupation Tax
2013 2012 2011 2010 2009 2008
Amounts in thousands
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
2013 2012 2011 2010 2009 2008
Business & Occupation Tax
Solid Waste
Cable TV
Telephone
The City of Bremerton imposes a local business
and occupation tax which applies to the gross
income of businesses that engage in business
activity within the City. Tax rates vary from
0.125% to 0.2% of gross revenue depending on
the classification of business activity. Recent
Council action reduced the B & O tax exemption
for businesses from $60k to $80k as part of a
long-term plan to eliminate the City’s dependency
on Business and Occupation Tax revenue.
Business & Occupation Tax is the fourth largest
source of revenue in the General Fund and is
budgeted at $2.7M in 2013.
Gas
Electric
Other Taxes
The remaining tax revenues compose a small
share of total tax receipts for the City. These
other taxes are as follows:
Amusement Device Gross Receipts Tax -
rate of 2% on gross revenues
Gambling Taxes (including pull tabs, card
rooms, bingo, raffles, and fundraising) -
rates vary from 2% to 20%
Leasehold Tax — State tax of 12.84% of
which the City is allocated a 4% portion
The 2013 budget anticipates receipts of $189K
from these sources, which is a decrease of 13%
over the prior year budgeted receipts. The reduction
is primarily due to Council action in
2010 to the reduced rate on player backed card
rooms by 50%, the elimination of Admissions
Taxes and the coding change of Business License
penalties which was moved to the Fines
and Forfeitures category.
General Fund Overview
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