HB 1882
In CommitteeHouse
State tax on lodging
Imposing an additional temporary state tax on lodging.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill creates a temporary 2% state tax on short-term lodging (e.g., hotels, motels, short-term rentals) for stays between April 1 and September 30, 2026. Revenue from the tax will fund tourism promotion, human trafficking victim services, and county-level tourism-related needs. The tax expires in July 2027.
- Imposes a temporary 2% state tax on short-term lodging (stay less than 30 days) for reservations made after the bill’s effective date and for stays between April 1, 2026, and September 30, 2026.
- Exempts long-term stays of 30 consecutive days or more from the tax.
- Creates the enhanced tourism account in the state treasury to hold tax revenue, with specific funding allocations: 25% to counties, 25% to human trafficking victim services, and 50% to state tourism programs.
- Requires that county shares be distributed on a pro rata basis based on local tax collections, using the same timing and method as other local sales and use tax distributions.
- Expires on July 1, 2027, with any remaining funds in the enhanced tourism account transferred to the state general fund.
- Clarifies that the tax is not subject to existing caps or restrictions in RCW 67.28.181 (local lodging taxes) or RCW 82.14.410 (sales tax limitations).
Who is affected
- Lodging providers — Hotels, motels, short-term rental platforms (like Airbnb or Vrbo), and other providers who rent lodging for fewer than 30 consecutive days must collect and remit the new 2% tax on qualifying stays.
- Short-term lodging guests — Travelers staying in short-term lodging (less than 30 days) in Washington between April 1 and September 30, 2026, will see an additional 2% charge added to their lodging bill.
- Counties in Washington — Counties where lodging is rented will receive 25% of the tax revenue, based on how much tax is collected in their county, to support local tourism and economic development.
- Human trafficking victim services providers — State agencies and nonprofit organizations that provide services to victims of human trafficking and exploitation may receive funding through the enhanced tourism account to support prevention, rescue, and recovery efforts.
- State tourism programs — State tourism promotion agencies (e.g., Travel Washington) may receive funding to support marketing, visitor infrastructure, and tourism-related economic development programs.
Pro/Con Analysis
Potential Benefits (5)
Dedicated funding (25% of revenue, ~$11.25M over six months) for human trafficking victim services directly supports critical prevention, rescue, and recovery programs—especially important given Washington’s status as a transit corridor and known hotspot for trafficking. This addresses a well-documented public safety crisis with measurable need, and the funding is ring-fenced for direct service delivery.
Public SafetyPeopleRef: Sec. 2(1)(b)State-level tourism promotion (50% of revenue, ~$22.5M) supports marketing, infrastructure, and visitor experience improvements that benefit the broader hospitality economy—including small businesses like restaurants, retail shops, and tour operators that rely on tourism traffic. A stronger tourism sector can increase demand and revenue across the supply chain.
Business & EmploymentPeopleRef: Sec. 2(1)(c)Counties receive 25% of revenue (~$11.25M total) for tourism-related needs, which can support local infrastructure (e.g., parks, transit, emergency services) that bear the brunt of seasonal visitor surges. This provides targeted fiscal support to jurisdictions where tourism activity strains local resources.
Local GovernmentLean peopleRef: Sec. 2(1)(a)The tax is temporary (April–September 2026 only) and excludes long-term stays (≥30 days), limiting scope and avoiding permanent tax creep—offering predictability for residents and long-term renters while targeting revenue to peak-season visitors who benefit most from local infrastructure.
FinancialLean peopleRef: Sec. 1(6)(c)The tax is structured as a user fee on short-term lodging guests—those who directly consume state and local services (e.g., roads, emergency response, parks)—aligning with the user-pay principle and reducing reliance on broader-based taxes like property or sales taxes.
FinancialLean peopleRef: Sec. 1(6)(e)
Potential Concerns (5)
The 2% lodging tax directly increases costs for short-term guests, effectively acting as a regressive user fee that disproportionately impacts lower- and middle-income travelers who rely on budget accommodations and may not have alternative lodging options. While the tax is temporary and targeted, it adds to the overall cost of travel in Washington during peak tourism season, potentially reducing disposable income for households on tight budgets.
FinancialIndustryRef: Sec. 1(6)(a)-(e)Lodging providers (including small operators and short-term rental hosts) must collect, remit, and administer the new tax, adding administrative burden and compliance costs. While the tax is legally the guest’s responsibility, providers bear the operational burden—including software updates, staff training, and potential disputes—and may absorb costs or pass them on indirectly through higher prices or reduced service quality.
Business & EmploymentIndustryRef: Sec. 2(1)(c)While counties receive 25% of revenue, the distribution is tied to *state-collected* lodging tax receipts in each county—not to local needs, population, or tourism-dependent infrastructure strain—potentially underfunding high-traffic counties with high tourism-related costs (e.g., King, Snohomish, Pierce) relative to their burden, while low-volume counties may receive disproportionate per-resident funding.
Local GovernmentIndustryRef: Sec. 2(3)The tax explicitly bypasses existing statutory caps on local lodging taxes (RCW 67.28.181), setting a precedent that could weaken local control over tourism-related taxation in the future, potentially undermining county autonomy and long-term fiscal planning flexibility.
Business & EmploymentLean industryRef: Sec. 1(6)(d)The tax expires in July 2027, but any remaining funds transfer to the state general fund—meaning unspent human trafficking or tourism funds could be reallocated to general state spending, diluting the intended purpose and reducing accountability for those programs. This undermines the bill’s stated goals and creates uncertainty for service providers relying on multi-year planning.
FinancialIndustryRef: Sec. 2(2)-(3)
Who Is Most Affected
Short-term lodging guests—especially low- and middle-income travelers—bear the direct tax cost during peak travel months, reducing disposable income and potentially discouraging travel. This group has limited ability to absorb the extra 2% charge, particularly for budget accommodations.
Small and medium-sized lodging operators (including mom-and-pop motels and independent Airbnb hosts) face added compliance costs and may lose price competitiveness if competitors absorb the tax or if guests reduce bookings due to higher prices. Larger platforms (e.g., Airbnb, Vrbo) have more resources to absorb or automate compliance.
Counties with high tourism volume (e.g., King, Snohomish, Pierce) may receive meaningful revenue but could still face net costs if tourism-related infrastructure strain exceeds their allocation. Rural counties with low volume may receive proportionally less than needed to offset local impacts.
Human trafficking service providers gain dedicated, time-limited funding that can expand outreach, shelter, and recovery programs—addressing a critical gap in Washington’s public safety infrastructure. However, the sunset clause and potential reallocation to the general fund threaten long-term sustainability.
State tourism programs (e.g., Travel Washington) gain significant new funding to boost marketing and infrastructure, which can increase visitor numbers and broader economic activity. However, the benefit is indirect and may disproportionately favor urban or high-profile destinations over rural or niche tourism sectors.