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

Olympia Municipal Code § 3.40.010 sets the rate: a special excise tax of four percent on the sale of or charge made for the furnishing of lodging that is subject to tax under Chapter 82.08 RCW. The code names the lodging it reaches as a hotel, rooming house, tourist court, motel, or trailer camp, plus the granting of any similar license to use real property, as distinguished from renting or leasing real property. It also sets a presumption: 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 it.

The chapter never uses the words short-term rental or vacation rental. Whether a stay at a rented house or room in the City of Olympia is taxed turns on the code's own test, which is whether the charge is subject to Chapter 82.08 RCW and whether it is a license to use property rather than a lease. Section 3.40.020 adopts the definitions of selling price, seller, buyer and consumer from RCW 82.08.010.

Section 3.40.030 makes the tax additional to any license fee or any tax imposed under any other law or City ordinance. The first two percent of the tax is deducted from the amount of tax the seller would otherwise be required to collect and pay to the Department of Revenue under Chapter 82.08 RCW.

Section 3.40.040 creates a special fund in the City treasury. Every dollar collected goes into it and is used solely for tourist promotion, acquisition of tourism-related facilities, operation of tourism-related facilities, or other uses authorized in Chapter 67.28 RCW. Section 3.40.050 protects the existing contract with The Washington Center for the Performing Arts. Under § 3.40.060 the Department of Revenue is the City's agent for collection and administration, RCW 82.08.050 through 82.08.070 and Chapter 82.32 RCW govern administration, the Department's rules for Chapter 82.08 RCW are adopted by reference, and the Department prescribes the forms and reporting procedures.