Washington STR Regulations
Washington Tax Rental Laws
If you rent out a room, apartment, house, or other dwelling to short-term guests, you may be responsible for collecting, filing, and remitting short-term rental taxes in Washington State. The location of your rental plays a key role in tax compliance, as your address determines the tax jurisdictions you must report to, the specific taxes you need to collect, and the applicable tax rates.
Registering with the State Department of Revenue
Before you can legally begin collecting taxes on your short-term rental, you’re required to register with the State Department of Revenue. Owners who operate who rent their property three or more times in a year are required to register. You’ll also need to register online for a Unified Business Identifier (UBI) Number. Depending on your location, you may need to also register with your local tax authority. To get a UBI, you’ll need to apply for a business license application with the State.
Lodging Taxes
Be sure to check on which lodging taxes are applicable to you based on your location.
When to File Tax Returns
When you register with the State, you’ll be assigned a filing frequency along with due dates. Due dates can be monthly, quarterly, or annually.
Taxes Collected by Airbnb and Vrbo
Online travel agencies (OTAs) including Airbnb and Vrbo collect and remit State Sales & Use Tax, Local Sales & Use Tax, Local Lodging Tax, Local Convention & Trade Center Tax, Local Special Hotel/Motel Tax, Local Tourism Promotion Area Change. For more information, visit Airbnb and Vrbo’s websites.
Helpful STR Tax Links
Have tax questions? Get more helpful resources by subscribing to WHCA updates.
Washington Short-Term Rental Rules & Regulations
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The information below is only a summary and not a replacement for the latest information from the municipalities listed below. Please check the local city/county website for the most complete and up-to-date information.
Bainbridge Island
All short-term rentals must register for an STR Certificate with the City in order to operate. Certificates are valid for one year from the date of issue. STR operators must also obtain a business license with the City and State, remit business and occupation taxes as well as all required lodging taxes, and show proof of liability insurance. To register and find all requirements, visit the City website.
Bellingham
Short-term rentals are dwelling units outside of hotes and motels that operate for less than 30 days. Short-term rentals are permitted but are limited to certain commercial and urban village zoning units. Permit applications and fees are required for all types of short-term rentals. For more information, visit the City STR website.
Chelan
Short-term rentals are restricted to specific land use zones. A license fee of $500 is required per unit and $250 for renewal per unit. For more information visit the City STR site.
Gig Harbor
Short-term rental owners must submit an application and comply with the City’s fees and required checklists. For more information and a full list of requirements and the STR ordinance, visit the City website.
Leavenworth
Short-term rentals are subject to a number of reuglations to operate. These include zoning regulations, permitting requirements, as well as inspection requirements. The City of Levenworth also has a cap on the number of hsort-term rentals in specifically zoned locations. In most cases, the cap is 6% of the current housing stock. Check with the City for additional information and regulations.
Olympia
Short-term rentals in Olympia are any lodging accomodation outside of hotes, motels, and B&B’s, that operate for a fee for less than 30 nights. There are two types of STRs in Olympia (Homestays and Vacation Rentals). The City also requres permitting, City and State business licenses, proof of liability insurance in addition to specific zoning reuglations for STRs. Access Olympia STR regulation information.
Port Angeles
All short-term rental operators must obtain a lodging business licence from the City and maintain compliance with the City Municipal Code Chapters 17.23 and 17.24. Short-term lodging (STL) includes bed-and-breakfast and short-term rental operations located in Port Angeles city limits. For more information, visit the City website.
Port Townsend
Short-term rentals requirements for operation include zoning and safety regulations, local tax requirements, permitting, as well as obtaining a business licence. Access the City STR application form. For additional information on STR requirements, visit the City STR information document.
Poulsbo
The City of Poulsbo does not currently regulation short-term rentals. Accessory Dwelling Units (ADUs) may not be used at short-term rentals and must operate for at lest 90 days. For more information, visit the City website.
San Juan County
No new vacation rental applications are currently being accepted in San Juan County. The San Juan County Council voted to limit the number of STR permits. For more information, visit the County website.
Seattle
Short-term rental operators are required to obtain a license from the City. Licenses are valid for 12 months from the date they are issues. For more information, visit the City STR site.
Snoqualmie
Short-term rental are required to operate for less than 30 days and must obtain a short-term rental licesnse. Operators must abide by occupancy limits which are determined by the size and type of property. Contact the City for more information.
Spokane
Short-term rentals are considered rentals operating for a period of less than 30 nights. Applications are requred to operate along with a City of Spokane Business License, a notarized Annual Life Safety Compliance Form, a copy of liability insurance for the property, a parking plan, floor plan with labels, fire safety plan, as well as a neighbor notification lett and list. For more information, visit the City website.
Walla Walla
Walla Walla classifies short-term rentals into Type 1 and Type two short-term rentals. Type 1 short-term rentals operate less than one month and must be the owner’s primary residence. Type 2 short-term rentals are non-owner occupied and are currently banned and may only operate if they were in good standing before Feb. 1, 2018. For more information, visit the City website.
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