Vacation rentals may face new taxes as Washington state lawmakers eye housing fix

Lawmakers in Washington state have advanced a bill to impose a 4% tax on short-term rentals like Airbnb, potentially doubling the current 2% excise tax municipalities can levy. Supporters argue it will help address housing shortages, while critics fear it may push tourists to hotels. The bill aims to generate around $21 million annually to fund affordable housing and services amid a significant housing crisis. If passed, local governments could implement the tax starting in April 2026.