Bill > HB2559

This bill allows counties, cities, and towns to impose a special excise tax of up to four percent on short-term rentals, which are lodging arrangements for less than 30 consecutive days, similar to hotel stays. The revenue generated from this tax must be used exclusively for essential affordable housing programs, such as acquiring, rehabilitating, or constructing affordable housing, funding operations and maintenance of such housing, providing rental assistance, or supporting social service organizations that help people attain and maintain housing. Local governments can retain up to 15 percent of the collected funds for administrative costs. The bill also makes changes to existing laws regarding lodging taxes, specifically excluding the new short-term rental tax from certain combined tax rate calculations and ensuring that local lodging taxes do not exceed specific combined rates. This new tax option will be available starting April 1, 2027, and local governments must publish annual reports detailing how the tax revenue is spent.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2559&Year=2025&Initiative=false