The Washington Supreme Court recently issued an important decision for Pacifica Law Group client the City of Federal Way affirming that cities have broad excise tax authority rooted in home rule principles.\u00a0 On June 18, 2020, eight justices of the Court held that the City has authority to impose a local excise tax on public water and sewer districts providing services to ratepayers within the City\u2019s borders, including Lakehaven Water and Sewer District, Highline Water District, and Midway Sewer District. The Court based its decision in large part on the plain language of RCW\u00a035A.82.020, which delegates broad authority to code cities to levy excise taxes on \u201call places and kinds of business\u201d activities within their boundaries. The Court determined that this language includes public and private businesses alike and rejected the Districts\u2019 argument that the City was required to show an additional and \u201cexpress\u201d authorization to tax the Districts\u2019 water and sewer businesses. The Court thus clarified that general grants of municipal taxing authority are sufficient to tax the business of another municipal corporation so long as the legislature\u2019s intent is plain, as it was here.<\/p>\n