Washington is debating a bill that would make short-term rentals more expensive to fund affordable housing initiatives.
After a similar effort failed last session, the Legislature is once again considering a controversial bill allowing local governments to tax short-term rentals up to 4% — which would be $8 on a $200-a-night stay.
Short-term rental owners who rent out fewer than three rooms at a time and live in the home at least half the year would be exempt, based on the state’s definition of short-term rentals.
Proceeds from the tax would go toward building and maintaining affordable housing as well as rental assistance programs — initiatives local governments are struggling to fund amid budget squeezes.
Last year, the Washington Department of Revenue estimated local jurisdictions would collect a combined $21 million in the first year of collections if a bill allowing the tax passed.
If passed, the law would take effect April 1, 2027.