About Tax Revenue

Taxes make up the largest share of revenue in the General Fund. The primary sources are Property Tax, Retail Sales Tax and Admission Tax. These revenues are critical to the City as they are some of the only revenues that are not restricted in their allowable use.

Property Taxes

Did you know? When you pay your property taxes, the money is shared among several local and regional agencies. In 2024, a little more than 12% of your total property tax went to the City of Newcastle. The rest went to the State School Fund, King County, Port of Seattle, and local school and special purpose districts.

Property taxes are a key source of funding for the City of Newcastle. They help pay for crucial services like fire and police protection, parks and street maintenance, city administration and community development services, communications, and other city programs.

To view information about a specific property, including assessed value, levy amounts and tax distribution, see the King County Assessor’s property information tools.

Sales Taxes

Retail sales tax is Washington State’s main source of tax revenue. Businesses that make retail sales in Washington must collect sales tax from their customers.

In general, a retail sale involves selling tangible personal property. It also includes certain services, such as installation, repair, cleaning, altering, improving, construction, and decorating. Other taxable services include activities that improve real or personal property, amusement and recreational services, lawn maintenance, and physical fitness activities. Sales of digital products to consumers are also considered retail sales.

To learn more about sales tax, eligible sales, rates, and distribution, see the Retail Sales Tax page from the Washington State Department of Revenue. Another useful resource is Sales and Use Tax from the Municipal Research and Services Center of Washington (MRSC).

Admissions Tax

In 2024, the City Council approved Ordinance 2024-663, creating an admissions tax program. Starting on January 1, 2025, a 5% tax applies to fees for events and activities in Newcastle. This includes indoor and outdoor events, coverage charges, season tickets, membership fees, and recreational or entertainment activities like concerts, sports, and pools.

Some activities are exempt from the tax. These include elementary and second school events, church or religious organization activities, government events, City-sponsored events, and qualifying non-profit activities.