Bill > HB1763

This bill introduces a new 6% special excise tax on short-term rental lodging facilitated through rental platforms, effective January 1, 2026. The revenue collected from this tax will be deposited into a newly created essential affordable housing local assistance account, which will be distributed monthly to counties and cities based on where the short-term rentals are located. Local jurisdictions can use these funds exclusively for affordable housing programs, including homeless housing assistance, temporary shelters, and housing infrastructure projects. For housing infrastructure projects, there are specific requirements such as meeting maximum allowed density, reducing impact fees, avoiding single-family-only areas, limiting single-family unit size to 2,000 square feet, and potentially agreeing to future annexation. Local jurisdictions may retain up to 20% of the collected funds for administrative costs. The bill also makes technical amendments to existing tax laws to incorporate this new tax and clarify its administration. The goal is to generate funding for affordable housing initiatives by leveraging the growing short-term rental market, providing local governments with resources to address housing challenges.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1763&Year=2025&Initiative=false