WA SB5576

Counties, cities, and towns may impose a special excise tax up to 4% on short-term rentals booked through platforms like Airbnb and Vrbo, with the tax collected by the state Department of Revenue at no cost to local governments

Revenue must fund affordable housing programs including acquiring/constructing affordable or workforce housing, operations and maintenance of supportive housing, rental assistance, and social services related to housing stability

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

The new short-term rental tax is excluded from the 12% lodging tax cap that applies to combined state and local taxes on hotels and lodging

Local governments may not impose this tax before April 1, 2026, and must first adopt a resolution of intent followed by legislation with simple majority approval