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Pasco council weighs formal short‑term rental permitting, opts for study and limited immediate action

3172305 · May 1, 2025
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Summary

Council members discussed whether to formally permit, regulate or leave short‑term rentals essentially in their current, complaint‑driven state. Most councilmembers favored limited regulation now and waiting for Visit Tri‑Cities’ regional study before major policy changes; staff will return with legal and enforcement options.

City staff presented background on short‑term rentals during the Pasco City Council workshop on April 28 and asked whether the council wanted to formally permit them, write a welcoming resolution, or take no immediate action.

Community & Economic Development staff explained the municipal code contains references affecting short‑term rentals in a few overlay districts but does not explicitly permit them citywide. Staff also noted that taxes from short‑term rentals are currently collected through operators such as Airbnb because hosts must obtain a state business license and remit lodging and sales taxes.

Councilmembers expressed a mix of views. Councilmember Morales said she was comfortable waiting for a regional Visit Tri‑Cities study expected in two to three years and did not want to burden hosts with heavy regulation now. “I wouldn't be in favor of bringing anything forward to have a formal permitting process,” Morales said. Councilmember Blaisdell, who has hotel industry experience, said her chief concern was whether transient lodging would reduce funding available to Visit Tri‑Cities via the TPA (tourism promotion assessment).

Legal and code staff warned that leaving short‑term rentals in a gray area means enforcement today is complaint driven; if the council were to formalize permitting, the city would then set rules and potentially expose itself to expectations that would be harder to tighten later. Staff recommended cleaning up ambiguous municipal code language and returning with options and legal analysis to show tradeoffs between formal permitting and maintaining the current approach.

Council direction: staff should draft a memo clarifying the city’s present legal position, enforcement options, and the risks and benefits of formal permitting. Several councilmembers asked staff to also engage Visit Tri‑Cities and get more information about TPA treatment and how other cities handle taxes. No ordinance or resolution was adopted at the workshop.