Overview: Are Short-Term Rentals Allowed in Sedro-Woolley?

Short-term rentals ARE allowed in Sedro-Woolley, Washington, provided you comply with all applicable regulations at the city, county, and state level. Sedro-Woolley requires a City business license for STR operations and has specific zoning and parking standards that must be verified for your property. However, Accessory Dwelling Units (ADUs) explicitly CANNOT be used as short-term rentals under Sedro-Woolley Municipal Code 17.100.

How to Start a Short-Term Rental Business in Sedro-Woolley

Step-by-Step Process

1. Confirm Zoning Compliance

   • Verify your primary dwelling is in a zone that allows STR use
   • Ensure adequate parking availability for guests
   • Contact Planning Department for zoning verification: 360-855-1661

2. Obtain Required Licenses

   • Apply for Washington State business license (UBI) if collecting sales tax or earning ≥$12,000/year
   • Secure Sedro-Woolley City business license
   • Apply through Washington Business Licensing Service

3. Meet State Safety Requirements

   • Install and maintain carbon monoxide alarms
   • Post emergency information and evacuation routes inside the unit
   • Provide local contact information reachable during stays
   • Post unit address, maximum occupancy, and escape routes

4. Secure Insurance Coverage

   • Maintain $1,000,000 primary liability insurance coverage
   • Verify coverage with your platform if using Airbnb, VRBO, or similar

5. Establish Tax Collection System

   • Register for state sales tax collection
   • Set up local lodging tax collection
   • Determine if your platform will collect/remit taxes on your behalf

Required Documents, Permits, Licenses, and Guidelines

City-Level Requirements (Sedro-Woolley)

Mandatory Documents:

• Sedro-Woolley City Business License
• Zoning Compliance Verification
• Parking Standards Confirmation
• Property Registration with local contact information

Forms and Applications:

• Business License Application (via Washington BLS)
• Zoning Compliance Application (available from Planning Department)
• Home Occupation Permit (if applicable)
• Conditional Use Permit (if required by zoning)

State-Level Requirements (Washington State)

Legal Definition:

• Short-term rental: lodging use where dwelling is offered for fewer than 30 consecutive nights
• Must comply with Washington State Legislative Information RCW 64.37.010

Required State Compliance:

• Washington State Business License (UBI) for tax collection
• Sales tax registration with Washington Department of Revenue
• Lodging tax compliance
• Insurance requirements as outlined in RCW 64.37.050

Specific Regulations for Short-Term Rentals

City Regulations (Sedro-Woolley)

Zoning Requirements:

• STRs must comply with underlying zoning for primary dwellings
• ADUs are explicitly prohibited from STR use per SWMC 17.100
• Verify parking standards with Planning Department
• Confirm use is permitted, conditional, or prohibited in your specific zone

Business License Requirements:

• Required for all STR operations within city limits
• Apply through Washington Business Licensing Service
• Annual renewal required
• Display license prominently in rental unit

Local Contact Requirements:

• Must provide local contact reachable during all guest stays
• Contact must be able to respond within reasonable time for emergencies

County Regulations (Skagit County)

Zoning-Based Approach:

• No separate countywide STR ordinance
• STR operations governed by underlying zoning designations
• "Short-term visitor accommodations" allowed in specific zones (Master Planned Resorts)
• Bed & Breakfast operations defined under general use standards

Verification Requirements:

• Confirm parcel zoning allows intended lodging use
• Verify septic capacity and water supply for maximum occupancy
• Ensure compliance with building and fire code requirements

State Regulations (Washington State)

Safety Standards (RCW 64.37.030):

• Post emergency contact information inside unit
• Display unit address, emergency information, and escape routes
• Post maximum occupancy limits
• Maintain working carbon monoxide alarms
• Provide local contact information for guests

Insurance Requirements (RCW 64.37.050):

• Maintain $1,000,000 primary liability coverage
• Platform-provided coverage acceptable if equal to or exceeding requirements
• Policy must remain current throughout operation

Taxation (RCW 64.37):

• Collect and remit applicable sales taxes
• Collect and remit local lodging taxes
• Register with Washington Department of Revenue if gross income ≥$12,000/year or collecting sales tax

Contact Information for Local Authority

Sedro-Woolley Planning Department

Phone: 360-855-1661 (Main City Hall)
Address: 325 Metcalf Street, Sedro-Woolley, WA
Website: sedro-woolley.gov/departments/planning
Business License Division: sedro-woolley.gov/departments/finance/business_licenses.php

Washington State Department of Revenue

Website: dor.wa.gov
Business Registration: Online portal available

Skagit County Planning & Development Services

Phone: 360-336-9410
Address: 1100 Memorial Highway, Mount Vernon, WA
Website: skagitcounty.net/Planning

Important Resources and Links

City of Sedro-Woolley

• Business Licenses Information
• Planning Documents and Forms
• Municipal Code
• Permit Application Portal

Washington State Resources

• RCW 64.37 - Short-Term Rental Regulations
• Department of Revenue Business Registration
• Lodging Tax Information

County Resources

• Skagit County Code Publishing
• Skagit County Use Tables and Zoning

Compliance Checklist

Pre-Operation: □ Verify zoning allows STR use for primary dwelling
□ Confirm adequate parking for guests
□ Obtain Sedro-Woolley business license
□ Register for Washington State business license (UBI)
□ Secure $1,000,000 liability insurance
□ Set up tax collection system

Ongoing Compliance: □ Post required safety information inside unit
□ Maintain current contact information with city
□ Collect and remit applicable taxes
□ Renew business licenses annually
□ Ensure compliance with noise ordinances
□ Monitor occupancy limits

Special Notes:

• ADU Prohibition: Do not attempt to operate STR in ADUs - explicitly prohibited
• Platform Coverage: Verify insurance coverage through Airbnb, VRBO, etc.
• Zoning Verification: Always confirm with Planning Department before purchase
• Tax Registration: Required even if platform collects taxes on your behalf

This guide provides the framework for legally operating a short-term rental in Sedro-Woolley, Washington. Always verify current regulations with city authorities before beginning operations, as zoning and licensing requirements may change.