Washington SB5576 creates a special excise tax on short-term rentals to fund affordable housing programs and housing infrastructure.

Washington SB5576 introduces a six percent special excise tax on short-term rentals, effective January 1, 2026. The revenue from this tax will be deposited into the essential affordable housing local assistance account. Local governments can use these funds for operating and capital costs of affordable housing programs, including homeless housing assistance and temporary shelters, or for housing infrastructure projects. The bill outlines specific requirements for housing infrastructure projects, including density limits and restrictions on single-family residential unit sizes.

Washington SB5576 creates a special excise tax on short-term rentals to fund affordable housing programs and housing infrastructure.

Washington SB5576 introduces a six percent special excise tax on short-term rentals, effective January 1, 2026. The revenue from this tax will be deposited into the essential affordable housing local assistance account. Local governments can use these funds for operating and capital costs of affordable housing programs, including homeless housing assistance and temporary shelters, or for housing infrastructure projects. The bill outlines specific requirements for housing infrastructure projects, including density limits and restrictions on single-family residential unit sizes.