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Bellingham, WA Short-Term Rentals: Taxes & Fees (2026)

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

Key Facts

License requirement
Valid business license required at application
Tax compliance
Local, state and federal license/tax rules apply
Liability insurance minimum
$1,000,000 aggregate (D)(14)
Renewal cycle
By Jan. 1 of every even-numbered year
Transferability
Not transferable to new owner or site (D)(16)
Enforcement
Planning & Community Development Dept.

Summary

BMC 20.10.037(D)(13) requires every short-term rental operator to meet all local, state and federal license and tax requirements and to submit proof of a valid business license with the permit application. Bellingham layers that on top of a required $1,000,000 liability insurance minimum and a biennial renewal.

13. Licenses and Taxes. a. Short-term rental operators shall meet all local, state and federal requirements regarding licenses and taxes. b. Proof of a valid business license is required with the short-term rental permit application.

View official code

Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance 2026-06-015, passed June 1, 2026).

Full Breakdown

10 BMC per the table in subsection (C). " Subsection (D)(3) additionally requires primary-residence operators to file a residency affidavit with the planning and community development department on or before January 1st of every even-numbered year. Permits are nontransferable to another operator or location under (D)(16), so a change of ownership requires a fresh license and permit application rather than an assignment.

Violations & Fines

Operating without a current business license or without meeting applicable tax obligations violates BMC 20.10.037(D)(13) and exposes the operator to the penalties in Chapter 20.52 BMC and to permit revocation under (D)(17), following the planning director's attempt at voluntary compliance. A revoked operator cannot obtain a new short-term rental permit for two years under (D)(17)(c). Failing to renew by the biennial January 1st deadline under (D)(15) or letting insurance lapse under (D)(14) similarly puts the permit at risk of revocation.

Frequently Asked Questions

Does Bellingham require a business license for a short-term rental?
Yes. BMC 20.10.037(D)(13) requires proof of a valid business license to be submitted with the short-term rental permit application, and requires the operator to meet all local, state and federal license and tax obligations.
How much liability insurance does a Bellingham STR operator need?
At least $1,000,000 in aggregate liability coverage for the short-term rental use, per BMC 20.10.037(D)(14), unless the operator books exclusively through a platform that already provides equal or greater coverage.
How often must a Bellingham short-term rental permit be renewed?
On or before January 1st of every even-numbered year, per BMC 20.10.037(D)(15). Primary-residence operators must also refile a residency affidavit on that same biennial schedule under (D)(3).
Can I transfer my short-term rental permit if I sell the property?
No. BMC 20.10.037(D)(16) states short-term rental permits are not transferable to another operator or location, so a buyer must apply for a new permit and meet the licensing and tax requirements independently.

Sources & Official References

Other rules in Bellingham

All Bellingham rules

How Bellingham compares: Cities with the Highest Short-Term Rental Taxes·Compare Bellingham to another location·View the Washington short-term rentals overview

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