The City of Wenatchee and Chelan County PUD have agreed to resolve a long standing taxing dispute in Chelan County Superior Court.

Wenatchee taxes revenues from retail water sales and has been applying the tax to PUD water customers within the city. The law is clear that the city can tax those customers on its own system, but is unclear if Wenatchee can tax city residents on the PUD water system. Chelan County PUD provides water to about 2,600 customers within the city limits.

The PUD's position is that taxation of one municipality by another is prohibited by the state Constitution. Wenatchee officials believe they have the authority to impose the tax.

John Janney, PUD general manager says, "Getting this issue resolved is in the best interest of PUD water customers.”

 

Wenatchee Mayor Frank Kuntz agrees, saying "A court decision is needed to resolve the lack of clarity in the law.  Both parties desire to do what is right for the customer."

Kuntz and Janney agreed to work together to make the litigation as cost-effective as possible for both entities.