Ordinance No. 2024-02 Short-Term Rentals (Approved 021324) Page 1 of 9
ORDINANCE NO. 2024-02
(Formerly Ordinance No. 2023-26)
AN ORDINANCE of the City of Bainbridge Island, Washington, adding chapter
5.38 to the Bainbridge Island Municipal Code regulating short-term rental units,
requiring owners of short-term rental units to obtain a short-term rental certificate,
imposing operational standards, and providing penalties.
WHEREAS, the short-term rental of residential properties for vacations and other uses
has become increasingly popular in recent years, and
WHEREAS, short-term rental units are most commonly booked through third-party
internet hosting platforms such as Airbnb and Vrbo, but the same can also be booked through
online platforms including but not limited to Expedia, Zillow, Craigslist, Facebook, Hotwire, etc,
or directly with a homeowner or tenant, and
WHEREAS, short-term rentals contribute to the community’s economic vitality, provide
needed visitor accommodations, and enable homeowners to generate income from their property,
but also have potential impacts on housing stock, neighborhood character, and quality of life for
residents, and
WHEREAS, short-term rentals are subject to the City of Bainbridge Island’s lodging tax
and the City needs a mechanism for identifying short-term rentals and ensuring that the owners
of such properties comply with the lodging tax regulations, and
WHEREAS, requiring a short-term rental certificate to operate a short-term rental unit
would enable the City to track such properties, ensure compliance with lodging tax regulations,
and ensure compliance with operational standards that strike a balance between the economic
benefits and potential impacts of short-term rentals.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE
ISLAND, WASHINGTON, DOES ORDAIN AS FOLLOWS:
Section 1. Short-term Rentals. A new chapter 5.38 is added to the Bainbridge
Island Municipal Code (BIMC) to read as follows:
Chapter 5.38
SHORT-TERM RENTALS
Sections:
5.38.010 Purpose.
5.38.020 Definitions.
5.38.030 Short-term Rental Certificate Required.
5.38.040 Nondiscrimination
5.38.050 Application and Issuance of Certificate.
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5.38.060 Advertising and Operational Requirements.
5.38.070 Payment of Taxes and Fees.
5.38.080 Denial, Suspension, and Revocation of Certificate.
5.38.090 Penalties and Enforcement.
5.38.010 Purpose. The purpose of this chapter is to identify the number of
short-term rental units in the city, to ensure that the owners of such short-term
rentals pay city taxes and fees, and to establish common sense quality of life
protections for residents and short-term rental owners.
5.38.020 Definitions. As used in this chapter, the following terms have the
meanings set forth below:
A. “Agent” means any person or entity authorized to act on behalf of the owner
of a short-term rental unit.
B. “Broker” means any person or entity that offers, lists, advertises, accepts
reservations for, and/or collects whole or partial payment for a short-term
rental unit, including but not limited to, on-line websites, on-line travel
agencies, and on-line booking agents.
C. “Owner” means the person or entity who holds legal or equitable title to a
short-term rental.
D. “Short-term rental" means the rental of any legally permitted residential
dwelling unit, as that term is defined in BIMC 18.36.030, for occupancy for a
period of not more than 30 consecutive days.
E. “Short-term rental unit” means the residential dwelling unit being rented or
offered for short-term rental. Rooms at hotels and inns are not short-term
rental units for purposes of this chapter.
5.38.030 Short-term Rental Certificate Required. It is unlawful for any
owner, agent, or broker to rent or offer to rent a short-term rental unit in the City
of Bainbridge Island without first obtaining a short-term rental certificate from the
city. A separate certificate is required for each short-term rental unit that will be
separately rented or offered for rent.
5.38.040 Nondiscrimination. No owner or broker shall decline a potential
guest, impose different terms or conditions, or discourage or indicate a preference
for a guest on the basis of race, color, creed, religion, sex, gender, sexual
orientation, gender identity, ancestry, disability, use of a trained dog guide or
service animal by a person with a disability, veteran or military status, familial
status, national origin, citizenship, immigration status, or lawful business
relationship.
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5.38.050 Application and Issuance of Short-term Rental Certificate.
A. Application Contents. The owner or the owner’s authorized agent may apply
for a short-term rental certificate by submitting an application on a form
provided by the city. The application form shall provide the following
information:
1. The name, address, and telephone number of the owner of the short-term
rental unit.
2. If the short-term rental unit is located at the primary residence of the
owner, which the owner will continue to occupy during the short-term
rental.
3. If applicable, the name, address, and telephone number of the owner’s
authorized agent for rental of the short-term rental unit.
4. A list of addresses of any and all additional short-term rentals operated by
the owner on Bainbridge Island.
5. The address and county plat number of the proposed short-term rental unit,
all internet listing sites for the short-term rental, and all listing numbers.
6. The number of rooms in the short-term rental unit and the allowed
occupancy stated on the listing platforms or internet sites.
7. The number of existing on-site parking spaces designated for the exclusive
use of the short-term rental unit.
8. The name, address, and telephone number of a local contact person who
shall be available 24 hours per day, seven days per week for the purpose
of responding within 60 minutes to complaints regarding the condition and
operation of the short-term rental unit or the conduct of occupants of the
short-term rental unit or their guests.
9. A statement, prepared by the owner and submitted with the application,
confirming the owner’s intention to operate a short-term rental unit, the
planned number of days per year the unit will be available for rent,
whether the owner will reside on the property while a portion of it is
available as a short-term rental unit, whether the owner occupies the short-
term rental unit in its entirety for part of the year, and if they intend to use
a property management company.
10. The written consent of any applicable homeowners’ association or
condominium owners’ association to the use of the residential dwelling
unit as a short-term rental unit.
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11. A certification by the owner of the proposed short-term rental unit, under
penalty of perjury, that all information contained in and provided with the
application is true and accurate.
12. Such other information as the city manager or designee deems necessary
to administer this chapter.
B. Application and Mailing Fees. The application shall be accompanied by a
nonrefundable application fee in an amount established by resolution of the
city council. The application fee shall be no greater than is necessary to
defray the city’s costs of processing the application. In addition to the
application fee, the application shall be accompanied by a fee sufficient to
cover the cost of mailing the statement referred to in BIMC 5.38.050(A)(9) to
all the residents and owners of property within 300 feet.
C. Mailing of Notice. The City shall mail a copy of the statement prepared by
the owner and submitted with the application to all residents and owners of
property within 300 feet. The City will also provide an opportunity for the
owner to include an optional personal message for all impacted neighbors.
Short-term rental units that are the primary residence of the owner and which
the owner continues to occupy during the short-term rental are exempt from
the requirements of this subsection.
D. Granting of Application. The short-term rental certificate shall be granted
unless the grounds for denial, suspension, or revocation set forth in BIMC
5.38.080 exist or the applicant fails to demonstrate the ability to comply with
the provisions of this chapter or other applicable rules and regulations.
E. Term of Certificate. Short-term rental certificates shall be valid for one year,
from January 1 through December 31. The fee will be prorated by month for
the first year of application. Certificates must be renewed annually for so long
as the short-term rental unit remains rented or offered for rent.
F. Contents of Certificate. The short-term rental certificate shall state the
maximum number of overnight occupants permitted to stay in the unit, the
maximum number of vehicles allowed, and a 24-hour, seven day per week,
local phone number of the owner/agent responsible for the short-term rental
unit.
G. Change of Ownership. The short-term rental certificate shall be personal to the
owner and shall not be transferable to any other person or entity. Within 14
days of any change of ownership of the short-term rental unit or the property
on which it is located, or within 14 days of any conveyance that materially
changes the ownership interest in the short-term rental unit or the property, a
new application for a short-term rental certificate must be filed to continue
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operation of the short-term rental. The new application shall be accompanied
by the required application fee.
H. Certificate Additional. The short-term rental certificate shall be in addition to
the business license required by BIMC 5.04 or any other permit required by
the city.
5.38.060 Advertising and Operational Requirements. The following
requirements apply to the operation of all short-term rental units:
A. Listing to Include Certificate Number. All advertisements and online listings
for short-term rental units shall include the short-term rental certificate
number.
B. Interior Display of Short-term Rental Certificate. The owner or agent shall
affix the short-term rental certificate in a highly visible location, within six
feet of the main entry door of the short-term rental unit to which it applies.
C. Exterior Display of Notice. A notice provided by the City containing a 24-
hour, seven day per week, local contact name and phone number of the owner
or agent responsible for the short-term rental unit, the number of bedrooms,
the maximum number of occupants permitted to stay in the unit, and the
maximum number of vehicles allowed shall be posted by the owner or agent
in a readily visible location on the exterior of the short-term rental unit. The
notice shall be a standardized design with a minimum size of four inches by
six inches. The notice shall be in plain view of the general public and shall be
maintained in good condition by the owner or agent. Short-term rental units
that are the primary residence of the owner and which the owner continues to
occupy during the short-term rental are exempt from the requirements of this
subsection.
D. Special Events. Weddings, corporate events, commercial functions, and other
similar events are allowed. Any such events that cause traffic, parking, noise,
disorderly conduct, or other impacts in excess of those associated with a
residential dwelling unit are prohibited at the short-term rental unit or on the
property on which the short-term rental unit is located.
E. Permitted Occupancy. The owner or agent shall limit the overnight
occupancy of the short-term rental unit to no more than a cumulative total per
short-term rental unit of two persons per room plus one additional person per
unit (excluding bathrooms, storage rooms, mud rooms, hallways, or other
areas not normally associated with overnight occupancy). In addition, the
occupancy shall not exceed the stated occupancy listed for the property on the
listing platform. All other applicable occupancy laws shall apply.
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F. Parking, Trash/Refuse Regulations and Avoidance of Public Nuisance.
Owners must ensure that overnight guests comply with all applicable City of
Bainbridge Island regulations and ordinances related to parking, trash and
refuse, and noise, including, but not limited to, BIMC 10.08, BIMC 8.16, and
BIMC 9.70.
G. Disposable Food Service Ware and Waste Reduction Regulations. Owners
and agents must comply with the provisions of BIMC 8.24 as they apply to
lodging establishments.
5.38.070 Payment of Taxes and Fees. Owners, agents, or brokers of short-
term rentals shall collect and remit to the Washington State Department of
Revenue all lodging excise taxes imposed by BIMC 3.65 for short-term rental
units located in the City of Bainbridge Island. Where owners, agents or brokers
collect lodging excise taxes for properties located both within and outside the City
of Bainbridge Island, such owners, agents, or brokers shall clearly identify to the
state those lodging excise taxes collected for short-term rental units located in the
city. Owners, agents, and brokers shall also be responsible for collection and
payment of all other applicable taxes and fees imposed by the city or any other
unit of government, including but not limited to any Tourism Promotion Area or
Business Improvement District, regardless of whether the short-term rental unit is
occupied by the owner.
5.38.080 Complaint, Verification, and Hearing Process
A. The City shall provide a system for citizen complaints about short-term rentals
to be submitted for review by the city manager or designee. Any such
complaint must be accompanied by evidentiary material, such as time stamped
photos, recordings, or statements. All citizen complaints will be verified by
the city manager or designee.
B. Denial, Suspension, or Revocation. In addition to any other remedy provided
by this chapter or by any other provision of the city code or other law, the city
manager or designee may deny a short-term rental certificate, and if already
issued, may suspend or revoke the same, subject to the right to appeal to the
City Council as provided in this section.
C. Grounds. The city manager or designee for deny, suspend, or revoke a short-
term rental certificate when there is substantial evidence to support any of the
following grounds:
1. If complaint(s) to the City of violation(s) of this ordinance have been
verified and deemed reasonable by the city manager or designee (see
5.38.080.A).
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2. If a material misrepresentation or false or misleading information was
included on the application for the short-term rental certificate.
3. If the short-term rental unit or the use thereof for short-term rentals is in
violation of any state or local law, rule, or regulation, including but not
limited to, any zoning, building, health, sanitation, safety, or occupancy
law, rule, or regulation.
4. If the owner, broker, or agent has violated any provision of this chapter,
any other applicable provision of the city code, or any other state or local
law, rule, or regulation in the rental, offer for rental, or use of the short-
term rental unit; or
5. If the owner, broker, or agent is delinquent in the payment of any
outstanding fees, assessments, or taxes owed to the city related to the
short-term rental unit or the property on which the unit is located.
D. Suspension or revocation. The city manager or designee shall consider the
nature and severity of the violation, whether the violation was intentional or
inadvertent, the impacts of the violation, whether the violation is a first or
repeated offense, and any other factor deemed relevant by the city manager or
designee in determining whether a temporary suspension of the short-term
rental certificate is appropriate or whether the certificate should be revoked.
E. Procedure. Prior to denying, suspending, or revoking a short-term rental
certificate, the city manager or designee shall provide the applicant or
certificate holder with at least 10 calendar days’ advance written notice of the
city manager’s or designee’s intent to consider denial, suspension, or
revocation, together with the date, time, and location of a meeting at which the
applicant or certificate holder will be given a reasonable opportunity to
present reasons to the city manager or designee why the certificate should not
be denied, suspended, or revoked. The meeting may be rescheduled with the
mutual consent of the city manager or designee and the applicant or certificate
holder. Upon completion of the meeting if the meeting is held, or upon the
failure of the applicant or certificate holder to attend the meeting, the city
manager or designee shall make a final decision on denial, suspension, or
revocation, and shall issue such decision in writing, with a copy mailed to the
applicant or certificate holder. The denial, suspension, or revocation shall not
become final, and any certificate that has been issued shall remain valid, until
the city manager or designee makes a final decision as provided in this
subsection and the appeal period provided in subsection F below has elapsed.
F. Appeal of Decision. The decision of the city manager or designee to deny,
suspend, or revoke a short-term rental certificate is appealable to the city
council. All appeals must be filed in writing with the city clerk within 20
calendar days of the issuance of the decision of the city manager or designee
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and must be accompanied by a nonrefundable appeal fee in an amount
established by city council resolution. The decision of the city manager or
designee shall be stayed by the filing of the appeal and any certificate that has
been issued shall remain valid until the appeal is decided by the city council.
The city council shall fix a date to hear the appeal and shall provide notice of
the hearing to the appellant at least 10 calendar days in advance of the hearing
date. The city council shall uphold the decision of the city manager or
designee unless the decision is not supported by substantial evidence or is
clearly erroneous. The city council shall issue a written decision. The
decision of the city council shall be final, subject only to a writ of certiorari
being filed with the Kitsap County superior court within 14 calendar days
following the date the written decision is issued.
G. Public Notice of Suspension or Revocation. If a short-term rental certificate is
suspended or revoked as provided in this section, notification of the
suspension or revocation shall be provided by the city to all residents or
property owners within 300 feet of the short-term rental. Notice may be
provided by mailing or by any other means deemed appropriate by the city,
such as but not limited to posting the notice on the city’s webpage.
H. Prohibited Operations. If a short-term rental certificate is suspended or
revoked, the owner and agent shall immediately cease renting or offering to
rent the short-term rental unit as a short-term rental. Brokers shall also
immediately cease offering, listing, advertising, accepting reservations for,
and/or collecting whole or partial payment of rents for the short-term rental
unit. If the certificate is suspended, operation of the short-term rental and the
related activities of the owner, agent, and broker may resume only upon the
lifting of the suspension. If the certificate is revoked, such operation and
activities shall not resume until a new certificate is applied for and issued. A
new certificate may not be applied for until a period of twelve months has
passed from the date of the revocation decision.
5.38.090. Penalties and Enforcement. Any person or entity violating any
provision of this chapter shall have committed a civil infraction and shall be
assessed a monetary penalty as provided in BIMC 1.24.020. A person or entity
violating any provision of this chapter shall have committed a separate civil
infraction for each day or portion of which the violation is committed, continued,
or permitted and is punishable accordingly.
Section 4. Severability. Should any section, paragraph, sentence, clause, or phrase of this
ordinance, or its application to any person or circumstance, be declared unconstitutional or
otherwise invalid for any reason, or should any portion of this ordinance be preempted by state
or federal law or regulation, such decision or preemption shall not affect the validity of the
remaining portions of this ordinance or its application to other persons or circumstances.
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Section 5. Effective Date. This ordinance shall take effect and be in full force on
September 30, 2024, which is more than five (5) days from its passage and publication as
required by law.
PASSED BY THE CITY COUNCIL this 13th day of February, 2024.
APPROVED BY THE MAYOR this 13th day of February, 2024.
Joe Deets, Mayor
ATTEST/AUTHENTICATED:
Christine Brown, MMC, City Clerk
FILED WITH THE CITY CLERK: January 19, 2024
PASSED BY THE CITY COUNCIL: February 13, 2024
PUBLISHED: February 23, 2024
EFFECTIVE DATE: February 28, 2024
ORDINANCE NO. 2024-02