Frequently Asked Questions of the Finance Department

What is Spokane Valley's sales tax rate?
Effective April 1, 2019, the retail sales tax collected on transactions within the City of Spokane Valley is 8.9 percent (.089).  The retailer forwards that sales tax to the Washington State Department of Revenue, which then distributes the taxes to the various agencies that have imposed them.

This how the tax is allocated:

State of Washington: 6.50%

City of Spokane Valley: 0.85%

Spokane County: 0.15%

Criminal Justice (Spokane Valley receives a portion of this tax): 0.10%

Spokane Public Facilities District (v): 0.10%

Spokane Transit Authority (v): 0.80%

Public Safety (Spokane Valley receives a portion of this tax) (v): 0.10%

Juvenile Jail (v): 0.10%

Mental Health (v): 0.10%

Law Enforcement Communications (v): 0.10%

(v) = voter approved

When you file a Washington Combined Excise Tax Return for retail sales transacted within the City's boundaries, use the City's 4-digit location code #3213 in Section III of the return form. The Spokane Valley local rate is 2.4 percent (.024) which reflects the combined total of the local jurisdictions in the chart above.

It is important to accurately record your sales tax collections so the appropriate sales taxes are allocated to help provide City services. If you have miscoded your rate on a previous return, or have questions, please contact us at 720-5041.

Can we pay our property taxes at the City?
The Spokane County Treasurer collects all property taxes for property located in Spokane County, including property located in the City of Spokane Valley.

How are property taxes calculated?  You'll find the answers on the Spokane County Assessor's Office "Calculating Your Taxes" web page.

How do I start a business in Spokane Valley? See our Business Startup web page for information on:

• City business registrations
• State business licensing
• Federal tax identification numbers
• Quarterly Gambling Taxes

How can I get on the City's Vendor List?  See our Public Notices/RFPs page.

How can I bid on City projects?  See our Public Notices/RFPs  page.

What is the City’s total budget?
See a copy of the current City budget here as well as copies of prior years' budgets.

How can I get a copy of the City’s budget?
A copy of the annual budget is available on our Budget and Finance Reports web page. A print copy can be obtained by contacting the City Clerk at (509) 720-5102 or by e-mailing cbainbridge@spokanevalley.org. You may also request a copy at City Hall. 

Where does the City get its money (what are the revenue sources)?
Revenues include property and sales taxes, fees for services, direct funding from other governments and miscellaneous other revenues. Revenues supporting core services flow into the General Fund. Read more about revenue sources in our current year's budget here. 

What is the General Fund and what is it used for?
The General Fund is the accounting entity used to track the revenues and expenditures associated with City services. All of the City’s general tax revenue is accounted for in the General Fund as are expenses associated with police, parks, library services, planning, and building inspection services. 

Are there other funds beside the General Fund?
The City uses a number of different “funds” or accounting entities to track revenues and expenditures. Most are required by state law to make sure revenues dedicated for a specific purpose are used appropriately. Examples include the Street Fund which accounts for revenues from gasoline taxes, and the Telephone Utility Tax, both of which are used to maintain city streets.

What types of expenses does the City have?
The City of Spokane Valley’s major expense categories are personnel, overhead/operating expenses, and capital projects. Because city government is primarily a service business, most of its expenses are associated with its employees. Operating expenses include rent, utilities, vehicle costs, basic supplies and contracts for services, such as when the City contracts with Spokane County for various services. 

Does the City have controls or limits on spending?
Yes. This spending limit is referred to as an appropriation, which limits how much the City can spend from each fund. An appropriation is established by City Council during the budget process. Each fund is required to have a balanced budget, the appropriation is designed to ensure that spending doesn’t exceed available resources. 

How much debt does the City have?
The City of Spokane Valley has approximately $12.79 million in general purpose debt outstanding as of January 2018.  This debt was incurred to provide funding for one-time capital projects, and represents just 1.98 percent of our total debt capacity.  We keep this figure low due to our philosophy of "pay as you go," to avoid debt.

What is the process for preparing and updating the budget?
City departments begin developing their budget in April. Revenue forecasts are updated and public input is gathered during the summer to be reviewed in August. The City Manager submits estimates of revenues and expenditures to the Council in August. A preliminary budget is developed in September and hearings are held in October with Council approval of the budget in November. By law, the City must adopt a balanced budget by December 31.