Lynnwood, WA Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 2% of lodging charges
- Statutory authority
- RCW 67.28.120
- Collected by
- WA Dept. of Revenue
- Exempt stays
- 30+ consecutive days
- Revenue use
- Stadium/convention center fund
- Adopted
- Ordinance 972, 1978
- Max fine
- $300 per violation
Summary
Lynnwood imposes a special excise tax of 2 percent on the sale or charge for furnishing lodging by any hotel, rooming house, tourist court, motel or trailer camp inside city limits under LMC 3.10.010, adopted pursuant to RCW 67.28.120. The Washington Department of Revenue collects it alongside state sales tax, and stays of one month or longer are presumed a rental, not taxable lodging.
In imposition of a special excise tax for the purposes set forth in Chapter 34, Laws of 1973 Second Executive Session, being RCW 67.28.120, the city council of Lynnwood, being the legislative and governing body of said city, does hereby impose and levy a special excise tax of two percent on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, trailer camp and the granting of any similar license to use real property as distinguished from renting or leasing real property; provided, that it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of property and not a mere license to use or enjoy the same.
Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance 3512, passed May 26, 2026).
Full Breakdown
120' at a flat rate of two percent on lodging revenue. 010 also sweeps in 'the granting of any similar license to use real property as distinguished from renting or leasing real property,' which is how the code captures short-stay licenses to occupy a room or site rather than a true lease. The dividing line is occupancy length: the section presumes that occupancy of real property for a continuous period of one month or more constitutes a rental or lease and not a mere license to use or enjoy the same, so stays under 30 days are the ones taxed as lodging.
32 RCW. 040 dedicates it to a dedicated 'public stadium facilities and/or convention center facilities fund' that can also secure bonds issued for those facilities. 08 LMC, which taxes use of publicly owned property at four percent and is a different levy entirely.
Violations & Fines
LMC 3.10.050 makes it unlawful for any person, firm or corporation to violate or fail to comply with the chapter. An individual convicted faces a fine of not more than $300.00, imprisonment for not more than 90 days, or both; a firm or corporation convicted faces a fine of not more than $300.00. The Washington Department of Revenue, as the city's designated collection agent, handles routine enforcement and remittance under its Chapter 82.32 RCW administrative authority.
Frequently Asked Questions
Does Lynnwood's lodging tax apply to short-term rentals like Airbnb?
Who collects Lynnwood's 2% lodging tax?
What happens if a lodging operator does not pay the tax?
Where does the lodging tax money go?
Sources & Official References
Other rules in Lynnwood
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Transient Occupancy Tax in Nearby Cities
How other cities in Snohomish County handle transient occupancy tax.