wa-law.org > bill > 2025-26 > HB 1882 > Original Bill

HB 1882 - State tax on lodging

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Section 1

  1. There is levied and collected a tax equal to six and five-tenths percent of the selling price on each retail sale in this state of:

    1. Tangible personal property, unless the sale is specifically excluded from the RCW 82.04.050 definition of retail sale;

    2. Digital goods, digital codes, and digital automated services, if the sale is included within the RCW 82.04.050 definition of retail sale;

    3. Services, other than digital automated services, included within the RCW 82.04.050 definition of retail sale;

    4. Extended warranties to consumers; and

    5. Anything else, the sale of which is included within the RCW 82.04.050 definition of retail sale.

  2. There is levied and collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price. The revenue collected under this subsection must be deposited in the multimodal transportation account created in RCW 47.66.070.

  3. Beginning July 1, 2003, there is levied and collected an additional tax of three-tenths of one percent of the selling price on each retail sale of a motor vehicle in this state, other than retail car rentals taxed under subsection (2) of this section. The revenue collected under this subsection must be deposited in the multimodal transportation account created in RCW 47.66.070.

  4. For purposes of subsection (3) of this section, "motor vehicle" has the meaning provided in RCW 46.04.320, but does not include:

    1. Farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181, unless the farm tractor or farm vehicle is for use in the production of cannabis;

    2. Off-road vehicles as defined in RCW 46.04.365;

    3. Nonhighway vehicles as defined in RCW 46.09.310; and

    4. Snowmobiles as defined in RCW 46.04.546.

  5. Beginning on December 8, 2005, 0.16 percent of the taxes collected under subsection (1) of this section must be dedicated to funding comprehensive performance audits required under RCW 43.09.470. The revenue identified in this subsection must be deposited in the performance audits of government account created in RCW 43.09.475.

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    1. There is levied and collected an additional tax on the furnishing of short-term lodging that is not otherwise exempted under this chapter.

    2. The rate is two percent on the sale of or charge made for the furnishing of lodging for a stay for any dates between April 1, 2026, through September 30, 2026. This tax applies to any reservations or bookings for the covered time period made after the effective date of this section.

    3. This tax does not apply to lodging furnished or sold for a continuous period of one month or more.

    4. The tax authorized under this subsection is not subject to the limitations of RCW 67.28.181 or 82.14.410.

    5. The revenues collected pursuant to this subsection (6) must be deposited into the account created in section 2 of this act.

  7. The taxes imposed under this chapter apply to successive retail sales of the same property.

  8. The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.

Section 2

  1. The enhanced tourism account is created in the state treasury. All receipts from tax imposed in RCW 82.08.020(6) must be deposited in the account. The revenues must be distributed as follows:

    1. 25 percent of the revenues received must be distributed to the counties on a pro rata basis based on amounts collected by the imposition of the additional state tax on lodging imposed pursuant to RCW 82.08.020(6). The revenues must be distributed by the state treasurer in the same time and manner as other local sales and use tax revenues.

    2. 25 percent of the revenues must be used to support programs assisting victims of human trafficking and exploitation. These moneys may be spent only after appropriation.

    3. The remaining 50 percent of the revenues must be used to support state tourism programs. These moneys may be spent only after appropriation.

  2. This section expires July 1, 2027.

  3. Immediately before the expiration of this section, any residual balance of funds remaining in the enhanced tourism account must be transferred by the state treasurer to the state general fund.

Section 3

RCW 82.32.808 does not apply to this act.

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