Lacey, WA Hotels & Lodging: Transient Occupancy Tax (2026)

The Lacey City Council set the lodging tax in Chapter 3.03 of the Lacey Municipal Code. Section 3.03.010 levies a special excise tax of four percent on the sale of or charge made for the furnishing of lodging by a hotel, roominghouse, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property. The section presumes that occupancy of real property for a continuous period of one month or more is a rental or lease and not a mere license to use or enjoy the property, so long stays fall outside the lodging tax. The section lists hotels, roominghouses, tourist courts, motels and trailer camps; it does not use the words short-term rental, so any question about a particular home rental turns on whether it fits those listed uses or the similar-license language.

The tax is stacked on top of everything else. Under § 3.03.030 it is in addition to any license fee or any tax imposed under any law or any other ordinance of the city of Lacey. Section 3.03.020(E) adopts the definitions of selling price, seller, buyer, consumer and the other definitions in RCW 82.08.010 for the levy.

Collection runs through the state. Section 3.03.050 designates the Department of Revenue of the state of Washington as the agent of the city of Lacey for collection and administration, applies the administrative provisions of RCW 82.08.050 through 82.08.070 and Chapter 82.31 RCW, adopts the Department's rules for Chapter 82.08 RCW, and empowers the Department to prescribe special forms and reporting procedures.

The money is restricted. Section 3.03.040 puts every dollar collected into a special lodging tax fund in the treasury of the city of Lacey, to pay the cost of acquisition, construction or operation of tourism-related facilities, to pay or secure bonds issued for that purpose, or to pay for tourism promotion. Under § 3.03.045 a Lodging Tax Advisory Committee reviews any proposal to impose a tax, raise the rate, repeal an exemption or change the use of the revenue, forty five days before enactment. It has two representatives from hotel and motel businesses that collect the tax, two persons involved in activities funded by the tax, and a council member as chair. The mayor appoints members with council consent, for three-year terms.