Washington Lawmakers Revisit Tax on Short-Term Rentals

The Washington Legislature is again considering a proposal that would allow local governments to tax short-term rentals, a move that has sparked strong reactions from homeowners, cities, and the lodging industry.

House Bill 2559 would allow cities and counties, beginning in April 2027, to impose a tax of up to 4% on short-term rentals such as Airbnb and Vrbo. The revenue would be used to support affordable housing, including new construction, maintenance of existing units, and rental assistance.

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Supporters argue short-term rentals are reducing the supply of long-term housing, especially in tourist communities like Leavenworth. Opponents say the rentals provide critical income for retirees and small property owners, and note that many guests are Washington residents traveling for work, medical care, or family visits.

Airbnb has spent nearly 4 million dollars in the past year opposing similar efforts in Washington.

State law defines short-term rentals as stays of fewer than 30 nights, with some owner-occupied rentals exempt. Research on the impact of short-term rentals has been mixed, and lawmakers have not yet scheduled a vote on the bill.

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