Olympia Update: Taxing Airbnb Rentals, School Truancy, Lot-Splitting
Airbnb is gearing up to fight a renewed push for a tax on short-term rentals. Based on our latest perusal of the Public Disclosure Commission, the homestay broker recently dumped more than $1 million into the humbly named Airbnb Helps Our State Thrive PAC.
While Airbnbs can be anything from free-standing houses to apartments to bedrooms in people’s houses, many short-term rentals are accessory dwelling units (ADUs): the backyard cottages lawmakers have allowed in much of the state. ADUs have garnered a fanbase in the statehouse as a solution for cross-generational families or a quick ticket to boosting property values. But there’s real money in the prospect of lining Washington’s most touristy locales with ritzy Airbnbs.
We’re told this PAC will advocate for short-term rental hosts broadly, but job one is killing a proposal from Sen. Liz Lovelett, D-Anacortes, whose district includes the scenic San Juan Islands, which have both many Airbnbs and an affordable housing crisis. Senate Bill 5576 would impose a 6% excise tax on short-term rentals statewide starting in 2026 to pay for local affordable housing programs ranging from housing assistance to homeless shelters, among other services. A similar tax proposal from Lovelett passed the Senate before dying in the House in both 2023 and 2024.
Expect to see boots hit the ground in Olympia to fight this bill. The newly created Washington Hosts Collaborative Alliance shot lawmakers a letter this week on behalf of some 16,000 short-term rental hosts and their friends in the industry, who gave Lovelett’s proposal two thumbs down.
https://www.postalley.org/2025/01/31/olympia-update-taxing-airbnb-rentals-school-truancy-lot-splitting/