Overview: Are Short‑Term Rentals Allowed in Bonney Lake?

Based on the provided municipal and state sources, short‑term rentals (STRs) are not explicitly prohibited by the City of Bonney Lake. The city has not adopted a local STR licensing regime or zoning ban, and STR operations appear to be permitted as residential uses under the city’s zoning framework. However, one important caveat applies: under Washington’s House Bill 1337 (2023) and the city’s draft ADU ordinance (D25‑40), Accessory Dwelling Units (ADUs) in Bonney Lake are prohibited from use as short‑term rentals. If a pre‑existing, legal ADU was operating as an STR prior to adoption, it may be eligible to continue as a nonconforming use subject to city standards, but this requires confirmation from the city.

At the state level, Washington does not ban STRs. Operators must comply with state tax and reporting requirements. Pierce County, where Bonney Lake is located, collects lodging taxes; STR operators must register, collect, and remit applicable lodging and sales/use taxes.

How to Start an STR Business in Bonney Lake

Use the steps below to launch an STR responsibly and in compliance with city, county, and state requirements:

1. Verify zoning and property eligibility

• Confirm the subject property is in an allowed residential or mixed‑use zone (R‑1, R‑2, R‑3, RC‑5, DC, DM, MC, etc.) per the Bonney Lake Zoning Map and BLMC Chapter 18. Zoning is the method used to designate allowed uses; STRs generally align with standard residential uses unless explicitly restricted.
• If you plan to use an ADU as the STR, do not proceed: ADUs cannot be used as STRs under HB 1337 and the city’s draft ordinance. Verify whether an existing ADU could be grandfathered as nonconforming (city confirmation required).
• If the STR will be part of a hotel, motel, or other commercial lodging concept, review C‑1/C‑2/DC/DM standards and any downtown design guidelines to ensure compliance.

2. Secure required registrations and licenses

• Washington State Department of Revenue: Register your business for tax purposes (sales tax, use tax, and lodging taxes). This may include MyDOR and any relevant excise tax accounts.
• State lodging tax (RCW 35.87A): Register to collect/remit lodging taxes. You must register with the Washington State Department of Revenue or the appropriate county‑level collection program, depending on Pierce County’s tax administration structure. Confirm whether Pierce County requires a separate lodging business license/registration.
• City business license: Check whether Bonney Lake requires a local business license for STR operators. The city offers a “Business License” resource page. If a license is required, complete it through the city’s application process.
• Sales tax/applicable use tax: Collect and remit per Washington DOR requirements for lodging and related charges.

3. Compliance setup (operational hygiene)

• Guest safety: Maintain working smoke and carbon monoxide alarms, clear egress, and appropriate safety measures consistent with state fire/life safety requirements. The AirROI market snapshot notes “Carbon monoxide alarm” and “Smoke alarm” as common amenity expectations and, in practice, essential safety items.
• Utility coordination: If your property includes ADU plumbing or separate metering, review water and sewer connection rules in BLMC 13.04 and 13.12. If building or converting an ADU, separate meters and connections may be required; however, ADUs cannot be used as STRs.
• HOA/Covenants: If the property is in a homeowners association, obtain written confirmation that STRs are allowed by the HOA’s rules. HOA restrictions are binding even when city code is permissive.

4. Listing creation and operations

• Align listing practices with typical market norms. AirROI data shows a “Low” STR regulation environment with the following commonly adopted minimum‑stay and cancellation policy patterns:
  • Minimum stay: 30+ nights (51.7% of listings), 2 nights (27.6%), 1 night (10.3%).
  • Cancellation policies: Firm (34.5%), Flexible (24.1%), Moderate (24.1%), Strict (17.2%).
• Pricing and seasonality: Bonney Lake exhibits strong seasonality—peak revenue in July, ADR typically highest in June, and lowest performance in October. Tailor minimum stays and promotions to seasonality (e.g., longer minimums in peak months; more flexibility in low season).
• Guest communications and taxes: Publish check‑in, house rules, parking instructions, and noise policies. Collect and remit lodging and sales/use taxes as required.

Documents, Permits, Licenses, and Guidelines

At the investor level, prioritize these materials and actions. Where a link is not available in the provided content, the item is marked “Link not provided in sources; see references below.”

• Washington State business tax registration

  • What: Sales tax, use tax, lodging tax registration; ongoing reporting/remittance
  • Where: Washington State Department of Revenue (MyDOR)
  • Link not provided in sources; see references below

• Lodging tax registration and compliance

  • What: Registration for Washington lodging taxes; may be administered by the state or county
  • Where: Washington DOR or Pierce County lodging tax program
  • Note: Confirm Pierce County’s process and whether a separate license is required
  • Link not provided in sources; see references below

• Bonney Lake municipal zoning map and zoning verification

  • What: Confirm allowed uses at the property’s address/parcel
  • Where: Planning & Building Division
  • Link not provided in sources; see references below

• Bonney Lake business license (local)

  • What: Local business licensing requirement, if applicable to STR operators
  • Where: City of Bonney Lake Business License resources
  • Link not provided in sources; see references below

• Zoning and design standards (select zones)

  • What: Zone‑specific use allowances and downtown design standards
  • Where: Bonney Lake Municipal Code (BLMC) Chapters:
    • R‑1 Low Density Residential: BLMC 18.14
    • R‑2 Medium‑Density Residential: BLMC 18.16
    • R‑3 High‑Density Residential: BLMC 18.18
    • RC‑5 Residential/Conservation: BLMC 18.20
    • C‑1 Neighborhood Commercial: BLMC 18.24
    • C‑2 Commercial: BLMC 18.26
    • MC Midtown Core: BLMC 18.27
    • DC Downtown Core: BLMC 18.36
    • DM Downtown Mixed Use: BLMC 18.37
    • Downtown Design Standards (Engineering/Development Policies)
  • Link not provided in sources; see references below

• ADU regulation (HB 1337 compliance)

  • What: ADUs are allowed under state law, but Bonney Lake’s draft ordinance D25‑40 prohibits ADUs from being used as STRs, requires separate water meters for new ADUs, and prohibits a second ADU on septic lots
  • Where: Draft Ordinance D25‑40; HB 1337 Session Law
  • Link not provided in sources; see references below

• Safety and habitability standards (state‑level)

  • What: Fire/life safety, smoke/CO alarms, and habitability requirements (not detailed in provided sources, but strongly advised)
  • Link not provided in sources; see references below

Specific Regulations: City, County, and State

City of Bonney Lake

• Zoning: The city employs a comprehensive zoning map and code to designate allowed uses. STRs are not explicitly regulated as a separate land use in the sources provided; residential STRs typically fit within the standards of the underlying residential or mixed‑use districts (R‑1, R‑2, R‑3, RC‑5, DC, DM, MC, etc.). Downtown Core (DC) and Downtown Mixed Use (DM) include design standards intended to protect pedestrian scale and land‑use balance.
• ADUs and STRs: Under the draft ordinance D25‑40 to implement HB 1337, ADUs are allowed under state law, but Bonney Lake is adding a local prohibition on using ADUs as short‑term rentals. The ordinance also requires separate water meters for new ADUs, and prohibits a second ADU on lots served by septic systems.
• Interim zoning: Ordinance No. 1656 adopted interim regulations in 2021 to comply with ESSHB 1220 regarding transitional and permanent supportive housing. This is informative context but not directly about STRs.

Pierce County (hosting level)

• Lodging taxes: Pierce County administers lodging taxes. STR operators must register to collect and remit lodging taxes and may need a county lodging business license. Confirm current requirements directly with the county or via the Washington DOR.
• Links not provided in sources; see references below.

State of Washington

• HB 1337 (2023): Updates ADU requirements statewide. Cities must either adopt compliant local regulations or default to state rules by July 1, 2025. Bonney Lake’s draft ordinance D25‑40 brings the city into compliance while adding local restrictions (prohibit ADUs as STRs; septic lot limits; separate water meters).
• Lodging tax and registration: Washington requires lodging providers to register for lodging tax collection and remittance through the Department of Revenue (and possibly county programs). STRs must comply with reporting and tax rules.
• Short‑term rental statutes: Washington does not impose a blanket ban on STRs. Use tax, sales tax, and lodging tax compliance is mandatory. Local jurisdictions may add regulations; in Bonney Lake, the sources do not show a city‑level STR ban or licensing regime.
• Links not provided in sources; see references below.

Contact Information

For zoning verification, ADU policy, and general planning questions, use the city’s Planning & Building Division:

• Planning & Building Division
  • Address: Public Services Center, 21719 96th St E, Buckley, WA 98321 (mailing: City of Bonney Lake, Attn: Planning & Building Division, 21719 96th St E, Buckley, WA 98321)
  • Phone: 253‑447‑4356
  • Inspection Line: 253‑447‑4357
  • Fax: 253‑862‑1116
  • Email: Planning & Building Division (link not provided in sources; see references below)
  • Office Hours: Monday–Thursday 9:00–4:00; Fridays by appointment only

For business licensing and permit questions:

• Permit Center and Business License resources (link not provided in sources; see references below)

For state tax registration and lodging tax compliance:

• Washington State Department of Revenue (MyDOR) (link not provided in sources; see references below)

For Pierce County lodging tax registration:

• Pierce County lodging tax program (link not provided in sources; see references below)

Links to Source Pages (IMPORTANT)

Use these references to confirm the latest details before investing or launching an STR. Where exact page URLs are not provided in the sources above, you can locate them via the city’s site navigation and the state/county portals.

• City of Bonney Lake — Planning & Building — Zoning Information
• Bonney Lake Zoning Map (City Maps)
• BLMC Chapter 18 Zoning titles (R‑1, R‑2, R‑3, RC‑5, C‑1, C‑2, DC, DM, MC)
• Downtown Design Standards (Engineering/Development Policies)
• City of Bonney Lake — Municipal Code portal (BLMC)
• City of Bonney Lake — Permit Center
• City of Bonney Lake — Business License resources
• Ordinance No. 1656 (Interim Zoning Regulations) — Washington State Digital Archives
• Draft Ordinance D25‑40 — HB 1337 ADU Code Amendment (May 6, 2025 CDC packet)
• HB 1337 (2023) — Session Law (Washington State Legislature)
• Washington State Department of Revenue (MyDOR)
• Pierce County — Lodging Tax Program (confirm registration and any local license requirements)

Practical Investor Notes

• Market signals: The provided market data (AirROI) indicates a low‑regulation environment, 29 active listings, and a strong seasonal pattern, with median annual revenue around $44,581 and ADR near $281. The most common minimum stay is 30+ nights, and the most common cancellation policy is Firm. These are market norms, not legal requirements, but they inform operational strategy.
• Zoning due diligence: Confirm zoning before closing. While STRs are not explicitly banned, zoning compliance and HOA rules can affect feasibility.
• ADU prohibition: Do not rely on ADUs for STRs in Bonney Lake. The draft ordinance explicitly prohibits STR use of ADUs. If you are considering a property with an existing ADU that is operating as an STR, request a written determination from the city about nonconforming use status.
• Utility impacts: If your building includes separate ADU plumbing/meters, the city requires separate water meters for new ADUs; this is a development standard and not an STR license, but it may influence property configuration and costs.
• Taxes first: Prioritize lodging tax registration and state business tax setup. Penalties for non‑compliance can erode profitability and cause listing takedowns.

What You Can Say to Stakeholders

• STRs are allowed in Bonney Lake subject to zoning and state tax laws; ADUs cannot be used as STRs under HB 1337 and local amendments.
• No city‑specific STR licensing is identified in the provided sources, but county lodging tax registration and state tax compliance are mandatory.
• For zoning confirmation and ADU policy, contact the Planning & Building Division; for tax setup, use the Washington Department of Revenue and Pierce County resources.

This guide synthesizes only the information contained in the sources provided and flags where confirmation is needed (e.g., county lodging registration and any local business license). Investors should verify the latest municipal code amendments and county/state tax requirements before proceeding.