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The State of Washington relies heavily on Sales Tax for operating revenue. Balancing the heavy reliance on sales taxes is the absence of an individual income tax, which produces an average of 20.7 percent of total tax revenues in other states. Food is exempt from Sales & Use Tax.
The current Sales & Use Tax rate within the City of Lakewood is 8.8% and is broken down as follows:
| State of Washington |
6.5% |
| |
(plus .01% from City of Lakewood 1.0%) |
6.51% |
| City of Lakewood (.5 + .5) |
1.0% |
| |
(less .15% to Pierce County and .01% to the State) |
0.84% |
| Criminal Justice Funding - City of Lakewood |
0.1% |
| Pierce Transit (county collection) |
0.6% |
| Regional Transit (state collection) |
0.4% |
| Pierce County |
0.0% |
| |
(plus .15% from City of Lakewood 1.0%) |
0.15% |
| Pierce County Jail (county collection) |
0.1% |
| Zoo Tax Parks (county collection) |
0.1% |
| Total |
8.8% |
The City of Lakewood has levied both half cent (.5 + .5) sales tax options it is allowed. It has also levied .1 for criminal justice funding. Of the 1.0%, the city receives .84% (the County receives 15% of the 1.0% and the State receives 1% of the 1.0% leaving 84% (.84%) to the City of Lakewood). The total sales tax percentage for the City of Lakewood equals .94% (.84% + .1%).
Retail Trade accounts for 60.87% of total Sales & Use Tax activity.
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