Regulation & Licensing · 2026
What the Law Requires in Gold Bar & Skykomish
Washington sets the floor for every short-term rental in the valley. The state's short-term rental law, RCW 64.37, passed in 2019, defines a short-term rental as a dwelling, or part of one, rented for fewer than 30 consecutive nights; it leaves out an owner-occupied home with fewer than three rooms rented and a unit booked by the same person for 30 nights or more. Every operator has to give guests a contact who can respond at the property during the stay, meet the state's carbon monoxide alarm rules, and post in plain sight the street address, emergency numbers for police, fire and medical help, a floor plan marking exits and escape routes, the occupancy limit, and the operator's contact details. Each unit needs at least $1 million of primary liability cover, unless every booking runs through a platform whose primary coverage is the same or better. A first safety violation brings a warning letter from the city or county attorney, and a repeat is a class 2 civil infraction. Platforms must register with the Department of Revenue, tell operators about their tax and safety duties, and warn them in writing that a personal homeowner policy may not cover rental use.
Tax is the second state layer, and the rate depends on which side of a town line you're on. The Department of Revenue's lodging rate chart for October 1 to December 31, 2026, puts the total tax on a stay at 11.1 percent in the City of Gold Bar and the Town of Index, including a 2 percent special hotel-motel tax, and at 8.9 percent in the Town of Skykomish, which shows no special hotel-motel tax for places with 59 or fewer units. On unincorporated land, Snohomish County's rows run from 9.9 to 12.5 percent, each with the 2 percent hotel-motel tax, depending on which transit districts an address falls in, and unincorporated King County outside the regional transit district shows 11.7 percent, including a 2.8 percent convention and trade center tax; the department's lookup tool gives the rate for an exact address. Airbnb says it collects Washington's combined sales tax, 7.0 to 9.6 percent of the listing price with cleaning fees in the base, for any reservation up to 29 nights, along with all locally imposed taxes on transient lodging, and the only place it names in the state is Seattle. State law leaves the operator responsible for any tax a platform doesn't remit, so direct bookings are yours to collect and file. One change to watch: Engrossed Substitute Senate Bill 5576 would let a county, city or town add a special excise tax of up to 4 percent on short-term rentals booked through a platform, to pay for affordable housing. It passed the state Senate 27 to 21 on March 11, 2025, went back to the Senate Rules Committee on April 27, 2025, and on January 12, 2026, was reintroduced and sent to Ways and Means; the Legislature's bill page shows no action since. It isn't law.
All three towns in the valley license short-term rentals, and the Town of Skykomish has the most detailed rules. Ordinance 474, published on January 26, 2021, after a moratorium passed on July 27, 2020, and a Planning Commission hearing on September 25, 2020, reworked rules first adopted in 2012 and created Chapter 18.16 of the town code. No one may advertise or operate a short-term rental in town without a town STR license, which is issued to the owner, allowed in the R-10,000, R-5,000, Commercial and Historic Commercial zones, and limited to one per parcel. The town is divided into seven districts, A through G, each with its own limit, for a total cap of 18; the limits don't apply in the Commercial and Historic Commercial zones, so in practice the cap falls on the two residential zones. Renewals are processed first, new licenses went first come, first served from February 1, 2021, and once a district is full, applicants go on a wait list and are drawn at random. The licensing guidance lists a $100 administration fee, a $500 property inspection, $100 for a reinspection and $50 to renew; licenses expire on May 1, and renewals are due April 1 to 15. Before a first license the house is inspected for building, fire and health code compliance, including a certified septic inspection that sets the maximum occupancy on a septic system, smoke alarms less than ten years old, carbon monoxide detectors, GFCI outlets near sinks, tubs and hot tubs, a hot tub disconnect, a tagged fire extinguisher in each unit and proper bedroom egress, and any outdoor fire pit or fireplace needs a current burn permit from the Skykomish Fire Department. A responsible party who lives within an hour's drive has to be reachable around the clock and answer within half an hour, and a sign inside the house lists the address, the maximum occupancy, that 24-hour contact and Town Hall's details. The ordinance also requires snow removal in winter so guests can walk in safely and park off the street, written consent from a neighbor who shares your driveway, and no weddings, corporate retreats or other events. Civil penalties are capped at $500 per violation, each day counts separately, and noise, occupancy or parking violations can cost the license. So can failing to collect and pay the Skykomish Lodging Tax, which the 2021 guidance set at 8 percent of gross revenue, due by January 28 of the following year. That town tax doesn't appear on the state's current rate chart, and the town's home page still describes the ordinance as 'in process' with a last update of February 1, 2021, so ask the town clerk which version is in force, whether the 8 percent is still collected, and whether any platform pays it for you before you buy.
Gold Bar and Index both cap their rentals as well. In the City of Gold Bar, a short-term rental needs a business license that meets the conditions in Chapter 5.20 of the city code and the council's conditional use approval as a short-term rental dwelling, and the license isn't issued until the approval is granted. The zoning criteria, as amended by Ordinance 776 in 2024, keep rental buildings at least 250 feet apart and allow no new rental once short-term rentals reach 6 percent of the homes in the residential zones, counted from the assessor's data. In 2026 the council looked at going further. A May draft of Ordinance 793 would have stopped new rentals after June 1, 2026, and the version heard on June 16 would cut the cap to half of one percent, which the public works director said would leave room for one more rental. The council then took Ordinance 793 off its July 7 agenda, and it wasn't on any agenda we read through October 20, 2026, so call City Hall at 360-793-1101 for its status. Those drafts also show the approval tied to a specific owner, so a buyer should plan to apply in their own name rather than inherit the seller's. The Town of Index adopted Chapter 17.60 of its code in 2023 with Ordinance 508 and amended it in 2024 and 2025. Owner-occupied rentals there have no cap and need no STR license, though they still go through the business license process. A non-owner-occupied rental needs a town STR license, issued to the owner after council review, and the posted code caps those at six in one section while another still refers to a cap of seven, so confirm the number with the town. Before a first license, a licensed home inspector and a septic professional inspect the house, with a property inspection every ten years and a septic inspection every five, and on a septic system the inspected capacity sets the occupancy. A responsible party living within a 30-minute drive has to answer within 30 minutes around the clock, licenses expire on January 1 with renewals due November 1 to 15, winter parking has to be kept clear of snow, outdoor fire facilities need a burn permit, and civil penalties run up to $250 per violation, with each day counted separately.
Outside the three towns, the local layer is thin, and that's worth confirming rather than assuming. In unincorporated Snohomish County, which takes in Startup and much of the land between the towns, a September 8, 2020 staff report to the county Planning Commission said short-term rentals such as Airbnb and VRBO listings 'are not regulated under Snohomish County Code' and that the term isn't defined there. The county's list of code development projects showed nothing on short-term rentals when we checked in October 2026, but the online county code wouldn't open for us, so treat the 2020 statement as a starting point and confirm it with Snohomish County Planning and Development Services. Its rules for bed and breakfasts are another matter: as that report described them, the owner must live in and run the place, a guesthouse may have no more than three guest rooms and an inn no more than six, and in 2020 the use needed a conditional use permit in most zones where it was allowed, so don't describe a whole-house rental as a B&B. Inside the towns, don't rely on the online codes alone: Gold Bar posts its municipal code for reference only and notes that newer code may not be online yet, and it sells business licenses through the state's Business Licensing Service. In unincorporated King County, the zoning code's definitions chapter, updated September 9, 2026, defines a bed and breakfast guesthouse but not a short-term rental. Along the river, shoreline and floodplain rules can matter more than rental rules: Gold Bar posts its Shoreline Master Program online, and any deck, hot tub pad or stair to the bank on a riverfront lot should be cleared with the city or county before it's built. US 2 crosses from Snohomish County into King County between Index and Skykomish, so confirm which county and which town line your parcel sits in. All of the above is orientation, not legal advice. Before taking a booking, check each rule against the town, the city, the county and the Department of Revenue as they stand that week, and read any covenants or association rules that bind the lot. Cavmir handles the marketing side; licenses, inspections and tax returns remain the owner's, with help from local professionals.