A proposal to levy a tax of up to 4% on short-term rentals has re-emerged in the Washington State Legislature, facing opposition from Airbnb. Senate Bill 5576 aims to empower local governments to impose this tax on vacation rentals listed on platforms like Airbnb and Vrbo.
The bill, along with House Bill 1763, seeks to generate new revenue to combat housing shortages, particularly in areas impacted by tourism. Senator Liz Lovelett, the bill's primary sponsor, emphasized the need for increased resources to support workforce housing in communities where tourism affects long-term rental availability. This marks the eighth consecutive year Lovelett has introduced a tax proposal related to short-term rentals.
Last year's version of the bill progressed out of the Senate but did not reach a vote in the House by the cutoff date. As the legislation is revisited, Airbnb's political action committee, HOST, is actively campaigning against the tax, arguing it would burden families traveling within the state and not effectively tackle housing affordability issues. Airbnb's Public Policy Manager Jordan Mitchell stated that the proposals primarily target homeowners sharing their properties for additional income.