Lodging

Lodging - Short-term rentals (less than 30 days)

Short-term rentals of real estate are considered transient lodging. Transient means any guest, resident, or other occupant you provide lodging services to for less than one month or less than 30 days in a row, if the rental period does not start on the first day of the month. Lodging includes hotels and motels, as well as renting all or part of a private residence.

Reporting requirements

Businesses or individuals providing short-term rentals are are subject to Retailing business and occupation (B&O) tax classification, and they must collect sales tax on their gross income from lodging sales.

In addition to sales tax, most Washington locations impose additional lodging taxes that apply only to lodging sales. Lodging businesses must report their sales using the location code of the lodging facility.

You can find the correct location code by using our Tax Rate Lookup tool or lodging sales rates flyer.

If you contract with an online lodging marketplace for your rental property, the marketplace may collect sales and lodging taxes on your behalf.

References

• RCW 82.04.050 – “Sale at retail,” “retail sale.”
• WAC 458-20-166 – Hotels, motels, boarding houses, rooming houses, resorts, hostels, trailer camps, short-term rentals and similar lodging businesses.
• Lodging guide

Lodging - Long-term rentals (30 days or more)

Long-term rentals of real estateare considered non-transient rentals. Non-transient rentals are those with a rental period of one month or more, or with the guest remaining in continuous occupancy for 30 days or more when the rental period does not start on the first of the month.

Reporting requirements

Businesses or individuals providing long-term rentals (non-transient) are exempt from B&O tax and retail sales tax. However, income from providing a license to use of real property is subject to B&O tax and may be subject to retail sales tax. For more information, see our Tax Topic article titled Rental vs. License to Use Real Estate.

References

• RCW 82.04.290 – Tax on service and other activities.
• WAC 458-20-118 – Sale or rental of real estate, license to use real estate.
• WAC 458-20-166 – Hotels, motels, boarding houses, rooming houses, resorts, hostels, trailer camps, short-term rentals and similar lodging businesses.
• Lodging guide