Arborwood Idaho, L.L.C. v. City of Kennewick

Summary

The Washington Supreme Court considered whether the City of Kennewick could impose a monthly ambulance service charge on households, businesses, and industries under RCW 35.21.768. The court held that the charge was not an authorized excise tax because it was imposed without the required connection to the receipt of ambulance services, and it also failed the applicable criteria for a regulatory fee, benefit charge, or direct-service fee. The court reversed the Court of Appeals.

Holdings

1. The ambulance charge was not a valid excise tax because it was not based on a voluntary act, privilege, occupation, or transaction authorized by RCW 35.21.768; instead, it was imposed on water and sewer customers regardless of actual ambulance service use.
2. The ambulance charge was not a valid regulatory fee, benefit charge, or direct-service fee because it primarily raised revenue for a public benefit and lacked a direct relationship between the flat charge and the service or burden attributable to the payers.
3. RCW 35.21.766 did not impliedly authorize Kennewick to impose a utility rate on every household, business, and industry because the statute authorized establishment of an ambulance service but did not authorize setting rates or imposing a general charge, and RCW 35.21.768 expressly addressed the available taxing authority.

Questions Presented

1. Whether Kennewick's monthly ambulance charge was an excise tax authorized by RCW 35.21.768.
2. Whether the ambulance charge was a valid regulatory or utility fee under the city's police power and the factors governing municipal fees.
3. Whether RCW 35.21.766 impliedly authorized Kennewick to impose utility charges on every household, business, and industry within the service area.

Disposition

reversed