Sales tax now applies to some services

Starting October 1: Some business services are now subject to retail sales tax, as required by state law, ESSB 5814. When you buy these services, vendors should add sales tax to your bill. If you sell these services, you should begin collecting retail sales tax. Learn more about Services newly subject to retail sales tax.

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  5. Part 2: Excess Levies And General Obligation Bonds
  6. General Obligation Bonds

General obligation bonds

As a subcategory of the excess levy, a general obligation bond is backed by the taxing district's ability to levy tax.

The taxing district must receive voter approval to issue a general obligation bond. The district can levy an amount sufficient to pay principal and interest for the bonded debt.

The major difference between an excess levy and a bond is time. A bond has a longer duration than an excess levy. Taxing districts issue bonds to pay for long-term projects such as buildings, infrastructure, schools and sewer systems. Typical bond levies include:

  • Construction bonds.
  • Transportation vehicle fund bonds.
  • Technology bonds.

While several taxing districts have specific statutes authorizing issuance of bonds, many taxing districts fall under the general bond statute, RCW 84.52.056.

Voter-approved bond levies are not subject to the statutory limitations.

General obligation bond ballot titles must contain:

  • Identification of the enacting legislative body.
  • Statement of the subject matter, not to exceed 10 words.
  • A concise description of the measure, not to exceed 75 words.
  • The maximum amount of the indebtedness to be authorized.
  • The maximum term any bonds may have.
  • A description of the purpose or purposes of the bond issue.
  • Whether excess property taxes will be levied to pay and retire such bonds.
  • A question asking if the ballot measure should be approved.

RCW 29A.36.071, 29A.72.050, 39.36.050