• Overview: Are short-term rentals allowed in Washington, Indiana? Short-term rentals (STRs) are permitted in Washington, Indiana, but operators must comply with all applicable state, county, and municipal requirements. Indiana state law (HB 1035, 2018) defines “short-term rental” and clarifies that this activity is permissible, provided the operator follows the state’s alcohol, drug, and safety restrictions (IC 7.1-1-3). State law does not impose a single statewide licensing or permit scheme for STRs. Local governments may add their own regulations; if they do, those govern. If Washington or Daviess County has not adopted city-specific STR rules, Indiana’s general laws apply.

• How to start a short-term rental business in Washington, Indiana

1. Compliance scope: Confirm property zoning/land use and any HOA or condo restrictions that may limit or prohibit STRs. 2) Business registration: Create a legal entity (e.g., LLC) and obtain any required state/county identifiers, as appropriate. 3) Tax setup: Establish registration for state and local taxes (e.g., state gross income/innkeeper’s taxes, local innkeeper’s tax if applicable) and set up systems to collect, report, and remit. 4) Insurance and risk: Secure liability coverage appropriate for transient lodging; consider landlord/property protection coverage beyond basic liability if you also lease long-term. 5) Operational readiness: Develop guest screening and house rules, check-in processes, safety plans (fire, emergency), and local occupancy/noise/parking compliance if applicable. 6) Ongoing compliance: Maintain records (reservations, payments, taxes, inspections), renew any local registrations or business licenses annually, and monitor for state/local updates.

• Required documents, permits, licenses, and guidelines At the state level, Indiana does not require a single statewide STR license. However, based on the 2018 Indiana alcohol/safety code amendment for STRs (HB 1035), operators must follow IC 7.1-1-3 restrictions on alcohol, drug, and safety provisions. You may need:
• A state business registration/identifier (for tax purposes).
• State and local tax registrations: Indiana Department of Revenue for state taxes and the Daviess County Treasurer for any local innkeeper’s tax.
• If the city or county later adopts ordinances, expect requirements such as a local STR registration/permit, safety inspections, posting requirements (e.g., emergency contact, occupancy limits, fire exit information), and compliance with noise, parking, and nuisance rules.

Specific regulations: Indiana state law, Daviess County, and Washington

• Indiana statutes relevant to STRs:

  • HB 1035 (2018) amended Indiana Code 7.1-1-3 to define “short-term rental” and to require STR operators to comply with the same alcohol, drug, and safety rules that apply to traditional lodging. This established STRs as a recognized lodging use under Indiana law. [IMPORTANT] Indiana state law is the controlling legal framework where local ordinances have not been enacted. Investors must confirm the most current text (IC 7.1-1-3).
  • County/local taxes: Daviess County (and Washington) may levy an innkeeper’s tax; collection, reporting, and remittance are required in addition to state taxes. Registration and filing are administered by the Daviess County Treasurer’s Office and the Indiana Department of Revenue (state-level).
  • State health and building codes: The Indiana Department of Health governs lodging sanitation and safety; ensure compliance with fire safety, emergency access, and sanitation standards. The Indiana Department of Homeland Security oversees building/fire codes; confirm compliance with the Indiana Fire Code as adopted locally.

• Daviess County level: No county-specific STR licensing or permit program was identified in the provided materials. In the absence of county ordinances, Indiana state law applies.

• City of Washington level: No city-specific STR ordinance or permitting guidance was identified in the provided materials. In the absence of municipal rules, Indiana state law applies. Operators should still follow the Indiana Code 7.1-1-3 requirements and any future local ordinances that may be adopted.

Important disclaimer: The provided search results include extensive Washington (state) laws and local rules (RCW 64.37) and do not include Daviess County or Washington, Indiana specific ordinances. This guide therefore applies Indiana state-level requirements and flags any city/county specifics as unknown until verified.

Contact information (verification required)

• Washington City Hall: Website and phone/email not identified in the provided results. Call Daviess County government or the Indiana Department of Revenue’s general line to ask for Washington City Hall contact details.
• Daviess County (County Treasurer for local innkeeper’s tax): Website and phone/email not identified in the provided results. Contact Indiana Department of Revenue or the Daviess County general line for the Treasurer’s Office information.
• Indiana Department of Revenue (state-level tax registration): www.in.gov/dor/ (no phone/email provided in the supplied content).

Links to source pages (available in the provided content)

• Indiana General Assembly: House Bill 1035 (2018) defining/regulating short-term rentals in Indiana: iga.in.gov/legislative/2018/bills/house/1035
• RedAwning summary (Indiana HB 1035 overview): www.redawning.com/pm/post/washington-short-term-rental-laws

Notes and next steps

• Given the lack of Washington-specific local ordinances in the provided content, confirm with the City of Washington and Daviess County whether any local STR permits, inspections, safety postings, or limits (occupancy/noise/parking) are required.
• Verify county/local innkeeper’s tax rates and filing cadence with the Daviess County Treasurer’s Office; set up sales/use tax registrations and reporting with the Indiana Department of Revenue.
• Implement internal policies to comply with IC 7.1-1-3 alcohol/drug/safety rules; consider periodic inspections and safety audits (e.g., fire extinguishers, smoke detectors, egress plans).
• Monitor for future city or county ordinances in Washington, Indiana, and update operations accordingly.