This bill creates a new local-option special excise tax on short-term rentals and establishes an essential affordable housing local assistance account in the state treasury to receive all proceeds. Counties, cities, or towns would be authorized to impose a tax up to 4 percent on sales or charges for short-term rentals (rates in whole percentage points), with the state "department" designated to collect the tax on behalf of jurisdictions at no cost. The law would permit jurisdictions to retain up to 15 percent of collections each year for direct and indirect administrative costs, require monthly deposits to the new account, and require annual public reporting of prior-year spending beginning the year after first collection. The bill directs that proceeds deposited into the account be used only for acquiring, rehabilitating, or constructing affordable or workforce housing and supportive housing facilities; funding operations and maintenance of such units; providing rental assistance; and funding social service and nonprofit operations that assist people in attaining and maintaining housing. Local jurisdictions may give full credit against a county tax for any city or town tax on the same taxable event, enter into interlocal agreements for qualifying projects, and exclude certain short-term rentals located in qualifying common interest communities if the legislative authority chooses. Jurisdictions must adopt a resolution of intent and a simple majority vote to impose the tax, must notify the department in writing at least 75 days before a tax change takes effect, and tax changes may only take effect on January 1, April 1, or July 1; the tax may not be imposed before April 1, 2027. The act creates a new chapter in Title 82 RCW (sections 1 and 2), applies existing administrative provisions in chapters 82.08, 82.12, and 82.32 RCW to the new tax where applicable, and amends RCW 67.28.181 and RCW 82.14.410. The amendment to RCW 67.28.181 includes a limit on municipal lodging excise taxes described in the bill text (not to exceed the lesser of 2 percent or a rate that, combined with specified other taxes, equals 12 percent, with rate increment rules). The bill references definitions in other statutes (for example, RCW 64.37.010 for "operator" and "short-term rental") and relies on additional statutory provisions for combined-rate calculations and exemptions. The text repeatedly refers to "the department" without identifying which agency. Important definitions and mechanics that depend on the cited RCWs and the full new chapter beyond sections 1 and 2 are not included here, and the interaction with existing local lodging taxes and exact combined-rate computations are not fully explained in the provided facts.

If enacted, counties, cities, and towns could add a new local tax of up to 4 percent on short‑term rental charges beginning no earlier than April 1, 2027, with proceeds sent into a new statewide account that will be distributed monthly to fund affordable and workforce housing, supportive housing services, rental assistance, and related social services. Local governments must first pass a resolution of intent and can keep up to 15 percent of receipts for administrative costs, must publish an annual spending report, and may exclude some rentals in qualifying common interest communities; short‑term rental operators and their customers are the most likely to see the added tax. Practically, this gives local governments a new revenue stream earmarked for housing but also new administrative duties (adopting ordinances, annual reporting, and coordinating monthly distributions), while short‑term rental operators must collect the tax. Important details are unclear from the provided text: the bill repeatedly names “the department” to collect and deposit the tax but does not identify which agency, and how this tax will interact with existing lodging and sales tax limits and combined‑rate calculations depends on other statutes not reproduced here.