Lakewood, WA Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Permit fee
- set by Lakewood City Council
- Application type
- Type II procedure, LMC 18A.20.080
- Business license
- required before and during operation
- Ongoing duty
- all local, state, federal taxes
- Annual renewal
- notarized compliance affidavit required
- Max penalty
- $500 Class 2 civil infraction
Summary
A Lakewood, Washington short-term rental permit is not free: LMC 18A.40.090(B)(2)(f)(vii) requires the application to include the STR permit fee set by the Lakewood City Council, and LMC 18A.40.090(B)(2)(i)(xii) separately requires the operator to meet every local, state and federal license and tax obligation for as long as it operates.
vii. The STR permit fee as established by the City of Lakewood City Council. ... xii. ... The STR shall meet all local, state, and federal requirements regarding licenses and taxes.
Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance 852, passed June 15, 2026).
Full Breakdown
090(A), footnoted to the operating conditions at (B)(2). 090(B)(2)(f)(vii) requires the complete application to include 'the STR permit fee as established by the City of Lakewood City Council,' meaning the dollar figure is not fixed in the zoning code itself but is set administratively and can change by Council action. 090(B)(2)(a) as a threshold requirement separate from the permit fee. 090(B)(2)(i)(xii) imposes an ongoing duty: the STR 'shall meet all local, state, and federal requirements regarding licenses and taxes,' which in Washington covers state and local retail sales tax and lodging tax collected on short-term stays in addition to the municipal business license renewal.
090(B)(2)(h) further requires the owner's annual business license renewal to include a notarized affidavit confirming the general operating regulations, including this tax and license duty, are still being met.
Violations & Fines
Failing to pay the required STR permit fee or letting a required tax or license obligation lapse breaches LMC 18A.40.090(B)(2), and LMC 18A.40.090(B)(2)(iii) makes the permit invalid once the associated business license no longer exists. Beyond permit invalidation, LMC 18A.20.105(B) treats a Title 18A violation as a Class 2 civil infraction under LMC 1.48.010, carrying up to a $500.00 penalty per day and location.
Frequently Asked Questions
How much is Lakewood's short-term rental permit fee?
Do Lakewood short-term rental hosts have to pay lodging tax?
What happens to my STR permit if my business license lapses?
Sources & Official References
Other rules in Lakewood
How Lakewood compares: Cities with the Highest Short-Term Rental Taxes·Compare Lakewood to another location·View the Washington short-term rentals overview
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Taxes & Fees in Nearby Cities
How other cities in this county handle taxes & fees.