Air BnB Tax Fails in WA Legislature…for Now

Some good news for those who have, and those who utilize Air BnB venues in WA.

  Proposed short-term rental tax dies in legislature

Senate Bill 5576, according to Geekwire, would have allowed local communities to impose up to a 4 percent tax on rentals of Air BnB's, Vrbo's, and other short-term rental properties.

The bill stalled and died because the State House did not call it up for a vote prior to the April 16th deadline for such proposals.

However, the sponsor, Democratic Senator Liz Lovelett of Anacortes, hopes to bring it back next session. She claims the bill would balance the rapidly growing short-term rental market with the need for affordable housing. That theory was soundly criticized by real estate, business and other economic experts.

Initially, the plan had a 6 percent tax ceiling, and Air BnB's parent company pushed back hard against it, because it would have likely affected business. The amended version dropped the tax level to 4 percent.

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The original bill made it a state tax, amendments added later made it a locally enforceable tax. Vrbo seemed to support it, however Air BnB strongly opposed it along with many GOP legislators, citizens, and other businesses.