Information
A new state law has expanded the retail sales tax to include payments on a contract previously approved by the Board. Pre-payment of remaining contract obligation prior to the October 1st, 2025 implementation of the sales tax would allow the County to keep contract costs to amounts previously authorized by the Board.
Type: Deliberation
Department: ASSR - Assessor
Directors' Update: TBD
Business Meeting: Sept. 23, 2025
Summary:1. On May 28th, 2024, the Board adopted Resolution 24-169 which awarded a contract in the amount of $1,185,000.00 to Tyler Technologies for implementation of software for the County Technologies Assessment & Tax System utilized by the County Treasurer and Assessor
2. The County’s payment obligations pursuant to the contract require installment payments commensurate with Tyler achieving defined objectives to implement software for the County
3. At present, Tyler is expected to implement the Assessment & Tax System software by the conclusion of 2026
4. On July 27th, 2025, Engrossed Substitute Senate Bill 5814 became law in Washington. ESSB 5814 expands the scope of the retail sales tax to sales of custom software and the customization of prewritten software
5. Accordingly, any installment payments made to Tyler after October 1st, 2025 will be subject to the new retail sales tax
6. Payment of the new retail sales tax is expected to expected to increase cost to the County by approximately $73,650
In order to save this additional tax amount, we request that we pay the ongoing amount prior to October 1, 2025. We are proposing two possible solutions:
1. Included is a draft pre-bill letter to pay the remaining balance for 2025 of $120,000, which would save approximately $9,840
2. The second and preferred proposal is to pay the complete total balance of $876,663, which would save the above approximate $73,650
Publications:
Cover Letter To:
Additional Copies To:
Resolution
APPROVE PREPAYMENT OF TYLER ONGOING CONTRACT DUE TO NEWLY IMPLEMENTED ENGROSSED SUBSTITUTE SENATE BILL 5814, WHICH EXPANDS THE SCOPE OF THE RETAIL SALES TAX FOR PAYMENTS MADE AFTER OCTOBER 1, 2025
WHEREAS, on May 28, 2024, the Board of County Commissioners (BOCC) adopted Resolution 24-169, which awarded a contract in the amount of $1,185,000.00 to Tyler Technologies for implementation of software for the County Technologies Assessment & Tax System utilized by the County Treasurer and Assessor; and
WHEREAS, the County’s payment obligations pursuant to the contract require installment payments commensurate with Tyler achieving defined objectives to implement software for the County; and
WHEREAS, at present, Tyler is expected to implement the Assessment & Tax System software by the conclusion of 2026; and
WHEREAS, on July 27, 2025, Engrossed Substitute Senate Bill 5814 became law in Washington. ESSB 5814 expands the scope of the retail sales tax to sales of custom software and the customization of prewritten software; and
WHEREAS, accordingly, any installment payments made to Tyler after October 1, 2025, will be subject to the new retail sales tax; and
WHEREAS, payment of the new retail sales tax is expected to increase cost to the County by approximately $73,650.
NOW THEREFORE BE IT RESOLVED the BOCC hereby authorizes prepayment of the full outstanding balance of $876,663 to Tyler Technologies for the County Technologies Assessment & Tax System prior to October 1, 2025 - a move that will save approximately $73,650 over the remainder of the contract, maintain the current budget allocation and avoid the need for a budget increase.
DONE IN OPEN SESSION this 23rd day of September, 2025.