WA HB2559

Counties, cities, and towns may impose a special excise tax up to 4% on short-term rental lodging, with the state Department of Revenue collecting the tax at no cost to local governments

Tax revenue must fund affordable housing purposes: acquiring/constructing affordable or workforce housing, operations and maintenance of housing units, rental assistance, and supportive services for housing stability

Local governments may retain up to 15% of collections annually for administrative costs and must publish annual reports by March 1st detailing how revenue was spent

Short-term rentals in approved resort/vacation communities or those exempt from local rental regulations may be excluded from the tax at the local jurisdiction's discretion

Tax cannot be imposed before April 1, 2027, and changes take effect only on January 1, April 1, or July 1 following 75 days' written notice to the department