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

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Base lodging tax
2% under RCW 67.28.180
Additional lodging tax
1.3% under RCW 67.28.181
Combined rate
3.3% of lodging charge
Collecting agency
WA Dept. of Revenue
Exempt stays
Occupancy of 1 month or more
Violation penalty
Misdemeanor, per-day offense

Summary

Spokane Valley levies a 2% lodging tax plus a separate 1.3% tax, a combined 3.3%, on charges for hotel, motel, rooming house, tourist court and trailer camp stays under SVMC § 3.20.010. Stays of one month or more are presumed a lease, not taxable lodging.

A. Imposition. 1. There is levied a special excise tax of two percent on the sale of or charge made for the furnishing of lodging that is subject to tax under Chapter 82.08 RCW, pursuant to RCW 67.28.180. 2. There is levied a separate special excise tax of 1.3 percent on the sale of or charge made for the furnishing of lodging that is subject to tax under Chapter 82.08 RCW, pursuant to RCW 67.28.181. B. Tax Imposed. The tax imposed under Chapter 82.08 RCW applies to the sale of or charge made for the furnishing of lodging by a hotel, motel, rooming house, tourist court or trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property. 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 real property and not a license to temporarily use and enjoy the same.

Full Breakdown

08 RCW. The tax reaches "a hotel, motel, rooming house, tourist court or trailer camp, and the granting of any similar license to use real property," language broad enough to sweep in short-term rentals booked for less than a month; the code presumes any occupancy of one month or longer is a rental or lease of real property, not a taxable license to use it, so month-to-month and longer stays fall outside the tax. 010. 020(B). 040.

Violations & Fines

Under SVMC § 3.20.050, failing or refusing to comply with any provision of the lodging tax chapter is a misdemeanor, and each day the violation continues counts as a separate offense, so unpaid or unreported tax can generate cumulative daily charges.

Frequently Asked Questions

Does the tax apply to short-term rentals booked through an app?
SVMC § 3.20.010(B) taxes "the granting of any similar license to use real property" alongside hotels and motels, and presumes stays under one month are a license rather than a lease, so short nightly or weekly rentals fall within the taxed category.
What is the combined lodging tax rate in Spokane Valley?
SVMC § 3.20.010(A) levies a 2% tax under RCW 67.28.180 plus a separate 1.3% tax under RCW 67.28.181, for a combined 3.3% special excise tax on the lodging charge.
Who collects the lodging tax?
SVMC § 3.20.030 designates the Washington State Department of Revenue as the City's agent for collecting and administering both lodging taxes alongside the state retail sales tax.
What happens if a lodging operator does not pay the tax?
SVMC § 3.20.050 makes noncompliance with the chapter a misdemeanor, with each day of continued violation treated as a separate offense, so penalties can accumulate quickly.

Sources & Official References

Other rules in Spokane Valley

All Spokane Valley rules

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