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February 5, 2024

Airbnb & Short Term Rental Laws and Regulations In Washington State

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In the vibrant tapestry of Washington state's tourism, nestled between serene nature and bustling city life, Airbnb offers a unique way to experience the Evergreen State. From the iconic Space Needle in Seattle to the tranquil silence of the Hoh Rain Forest, travelers seeking adventure or urban exploration rely heavily on short-term vacation rentals. However, navigating the complexities of short-term rental laws and regulations in Washington state isn't as straightforward as one might hope. It is essential for Airbnb hosts to pay careful attention to compliance with state requirements to avoid legal issues and ensure the longevity of their rental businesses. Whether you're considering turning your Seattle loft into an urban escape for guests or offering a cozy cabin near Mount Rainier, adherence to the regulations will dictate the success and legal standing of your Airbnb venture in Washington. Consider the wisdom of obtaining landlord insurance in Washington before the rental agreement officially starts.

Key Takeaways

  • Washington state offers a diverse array of attractions, enhancing the appeal of Airbnb rentals.
  • Airbnb hosts must comply with state-specific short term rental laws to operate legally.
  • Regulations vary by city within Washington, necessitating localized knowledge for compliance.
  • Understanding and adhering to tax obligations is critical for Airbnb hosts in Washington.
  • Staying current with evolving legal issues is necessary to maintain a successful Airbnb business.
  • Ensuring guest safety is not only a priority but a legal requirement for short-term rentals.

The Allure of Washington State for Airbnb Guests

Washington State unfolds as a treasure trove for vacation rental enthusiasts seeking to immerse themselves in a region characterized by its natural splendor and cultural vibrancy. An invitation to escape the monotony of daily life, the state beckons with its blend of charming cities, national parks, and tourist attractions that are as diverse as they are captivating.

Majestic national parks serve as the cornerstone of Washington's natural allure. Imagine waking up to the sight of Mount Rainier, a sleeping giant with slopes cloaked in abundant greenery and snow. For those who find solace in the wilderness, the Hoh Rain Forest in the Olympic Peninsula presents a verdant world where time pauses amidst the eternal green. With vacation rentals placed strategically near these parks, hosts offer guests the opportunity to seamlessly connect with nature's grandeur.

Yet, the appeal of Washington's outdoors is matched by the unique ambiance of its charming cities. Leavenworth, with its Bavarian-themed facades and festoons, provides a slice of Europe on American soil, while the coastal city of Bellingham attracts with its vibrant art scene and access to the San Juan Islands—a quintessential Pacific Northwest paradise.

Not to be overlooked, Spokane, on the state's eastern edge, presents itself as a hub from where adventures on the Pacific Crest Trail can begin, or a place to delve into more urbane pursuits among its galleries and eateries.

One trip to Washington will never be enough, and with each visit, it's easy to discover more of what makes the Evergreen State one of the best to visit in the nation.

For Airbnb hosts, these varied environments offer a vast palette from which to craft unforgettable experiences for guests, allowing them to tap into the growing demand for authentic travel experiences. From the urbanite seeking a weekend getaway in Seattle to the hiker looking to scale the Cascades, every vacation rental can cater to a story waiting to unfold.

  • Mount Rainier and the Hoh Rain Forest invite nature lovers and photographers.
  • Leavenworth and Bellingham offer cultural and artistic retreats.
  • Spokane serves as a gateway to the arid landscapes of Eastern Washington.
  • The Pacific Crest Trail challenges those in search of adventure.

Indeed, the kaleidoscope of attractions within Washington State not only makes for an extensive itinerary for tourists but also helps solidify its position as a premium destination for vacation rentals. The key for Airbnb hosts is to harness the state's natural beauty and cultural offerings to ensure each stay is not just a trip, but a passage to the heart of Washington's charm.

Airbnb's Impact on Washington's Tourism and Economy

Exploring the ramifications of Airbnb on the thriving tourism sector in Washington State reveals a multifaceted impact that extends well beyond providing a mere bed to rest. The platform's rise runs parallel with the burgeoning trend of short-term rentals, reflecting a deeper integration into the local economy and diverse housing market. Airbnb's ascent marks a notable shift in how travelers experience Washington, fostering a symbiotic relationship that benefits guests, hosts, and local communities alike.

The Surge of Short-Term Rentals

Amid the towering evergreens and urban allure of Washington, Airbnb's platform has catalyzed a surge in short-term rentals. The convenience and variety offered by these accommodations have not only augmented the state's vast tourism offerings but have also provided a flexible way for property owners to capitalize on rental income. As a harbinger of change in the housing laws landscape, the rise of Airbnb has encouraged lawmakers to draft short term rental laws that seek to balance the growing popularity of such rentals with the needs of permanent residents.

Economic Benefits for Local Communities

Fostering economic vitality, Airbnb has empowered Washington residents to convert their properties into lucrative rental property ventures, significantly bolstering the local economy. This increase in rental income has a ripple effect, as guests infuse money directly into neighborhood businesses, from coffee shops in Seattle to boutiques in Bellingham. With each booking, a microcosm of economic activity blossoms, showcasing how Airbnb and its network of short-term rentals have become integral pieces in the state's economic puzzle.

Understanding Washington State's Definition of Short-Term Rentals

In the lush and varied landscape of Washington State, the term short-term rentals is essential for anyone seeking to engage in hosting travelers through platforms like Airbnb. These rentals, as defined by the state, include a wide array of accomodating options such as vacation home rentals, individual rooms in houses, condos, and apartment rentals. What binds these diverse types of lodging together under a single definition is the duration of stay, which Washington State prescribes as being less than 30 consecutive days.

This distinction is not merely academic but carries significant regulatory implications. For those interested in home sharing or converting their property into a temporary abode for guests, understanding and adhering to the short term rental laws is not optional but rather a legal necessity. Property owners are mandated to manage their rental operations in line with state regulations, which span across acquiring a proper state business license to an obligatory registration with the Washington Department of Revenue.

Compliance with these stipulations ensures that hosts can provide lodging options that not only enrich the traveling experience for visitors but also contribute positively to the local tourism ecosystem. It's within this framework that vacation home rentals and home sharing ventures can thrive—rooted in legal standing and blossoming in Washington's robust tourist industry.

  • A state business license is a key requirement for operation.
  • Registration with the Washington Department of Revenue is part of compliance.
  • Durations of stay for these rentals are capped at less than 30 days.
  • Vacation homes, condos, and apartment rentals fall under this category.

For the entrepreneurial spirit inspired by Washington's natural magnificence and cultural wealth, engaging in the business of short-term rentals offers a pathway to participate in the state's tourism narrative. It is an opportunity that demands understanding the Washington state definition of short-term rentals and the laws that shape this mode of lodging. With these insights, individuals can navigate the legalities of hosting with confidence and create experiences for guests that capture the essence of Washington living.

City-Specific Airbnb Regulations: Seattle Versus Tacoma

As the popularity of Airbnb continues to soar, the landscape of home sharing in Washington state displays varied hues of legal frameworks from city to city. Hosts and investors tapping into the lucrative short-term rental market face a complex array of regulations that cater to the unique challenges and opportunities within local municipalities. Particularly, the cities of Seattle and Tacoma have carved out distinctive legal structures, reflective of their individual community needs and policy goals.

Seattle's Unique Short-Term Rental Policies

In the bustling hub of Seattle, where the Space Needle punctuates the skyline, Airbnb has established a strong foothold, prompting the city to implement unique short-term rental (STR) policies. A standout amongst these is the STR platform fee, a charge of $1 per night, applicable to certain listings and reservations. This regulation is part of a broader suite of legalities including zoning restrictions and occupancy limits that aim to maintain the integrity of local neighborhoods while still supporting the thriving tourism industry.

Hosts operating within the Emerald City must deftly navigate these requirements, paying close attention to the tax implications that dovetail with Seattle's regulations. The city enforces taxation aligned with the State Combined Sales Tax and Special Hotel/Motel Tax, demanding hosts to be diligent in understanding and fulfilling these fiscal responsibilities.

Tacoma's Approach to Home Sharing

Down south in the port city of Tacoma, where the aroma of sea salt mingles with the urban environment, Airbnb regulations take on a different contour. Here, home sharing hosts are obligated to reside within their rental property if they wish to lease individual rooms. This policy underscores the city's commitment to preserving residential integrity, ensuring that neighborhoods retain their familiar local character amid the dynamics of short-term leasing.

While Tacoma's regulations share the common thread of safety and fiscal accountability found in Seattle's laws, they differ by placing an emphasis on owner occupancy. By requiring hosts to be more than temporary custodians of their properties, the city promotes a sustainable model of home sharing, thoughtfully harmonizing the influx of travelers with the established rhythms of Tacoma's communities.

Navigating Zoning Restrictions and Land Use in Washington

The intricate fabric of short term rental laws is interwoven with zoning restrictions and land use policies, which have a profound influence on the operational scope of Airbnb and other similar accommodations across Washington state. The savvy host must not only offer an attractive property but also ensure that every aspect of their operation adheres to the nuanced legal framework established by local governing bodies.

Zoning laws, varying considerably from Seattle's densely urban fabric to the more expansive and rural landscapes of Eastern Washington, determine what types of land use are permissible in different regions. These laws directly impact where short-term rentals may exist, guiding hosts on where they can legally provide lodging to out-of-town guests or transient visitors.

Being well-versed in the zoning restrictions specific to your locale is essential to maintain compliance and to avoid the pitfalls that can accompany legal issues tied to inappropriate land use.

For instance, some zones may strictly be reserved for residential purpose, barring any commercial activities, including short-term rentals. Conversely, other areas might freely accommodate such entrepreneurial endeavors, fostering tourism and local economics.

  • Understanding the zoning regulations is crucial for the placement and promotion of rental properties.
  • Awareness of land use policies ensures alignment with the city's developmental strategies.
  • Regular consultation with local planning departments can mitigate the chance of violations.
  • Incorporating zoning compliance within the business model is a key element for legal operation.

Compliance with these restrictions not only prevents legal complications but is a testament to a host's commitment to contributing positively to the neighborhood's atmosphere and fabric. Whether it involves the hustle and bustle of Seattle or the serene surroundings of the Olympic Peninsula, every short-term rental serves as an active player in Washington's broader land use narrative.

Ultimately, by aligning with Washington state's zoning restrictions and land use plans, short-term rental hosts can offer experiences that resonate not only with guests' desires but also with ecological and community sustainability.

Key Licensing Requirements for Washington State Airbnb Hosts

Embarking on the journey of becoming an Airbnb host in Washington state means navigating through a series of licensing requirements that form the backbone of compliant rental operations. This regulatory landscape is designed to ensure safety, accountability, and contribution to the local economy. Consequently, the quest for crafting memorable stays for guests goes hand-in-hand with the fulfillment of these essential legal obligations.

State Business License Essentials

At the forefront of legal compliance for Airbnb hosts is the procurement of a state business license. This critical step legitimizes the rental venture, bringing it under the purview of state short term rental laws. Washington state delineates a short-term rental property as one providing lodging for less than 30 consecutive days. Thus, hosts must navigate the complexities of acquiring the appropriate business license and ensuring that their operations are in alignment with the Washington Department of Revenue.

Compliance with stringent licensing requirements not only standardizes the quality and security of accommodations but also paves the way for meeting tax obligations, which is crucial for maintaining the economic integrity of the state's tourist industry. The business license acts as a gateway through which all other statutory requirements flow, anchoring the business in legality and professionalism.

The Role of Short-Term Rental Platforms in Licensing

Airbnb and other platforms have emerged as pivotal figures in assisting hosts with licensing and tax remittance. These platforms serve as intermediaries that can offer guidance and simplify the process of adhering to the intricate web of local and state regulations. In Washington state, it's more than just fostering a connection between hosts and guests; it's facilitating a relationship that is built upon a solid foundation of licensing requirements and fiscal transparency.

For hosts, short-term rental platforms play a notable role in the education and enforcement of licensing standards, often providing indispensable resources and tools for ensuring that their accommodations meet the collective standards as set forth by Washington state authorities.

  • Awareness of licensing requirements for Airbnb hosts is critical for legal operation.
  • Obtaining and retaining a valid business license is non-negotiable for hosts in Washington state.
  • Short-term rental platforms act as conduits for information and compliance facilitation.
  • Platforms may assist with the collection and remittance of applicable taxes, making the process more efficient for hosts.
  • Staying informed about changing compliance standards is essential for continuity and success in the short-term rental market.

Attention to these licensing considerations remains a cornerstone of starting and maintaining a successful Airbnb operation. As Washington state continues to evolve its approach to regulating short-term rentals, prospective and existing hosts bear the responsibility of staying informed and vigilant, ensuring their businesses flourish within the letter of the law.

Washington's Tax Regulations for Short-Term Rentals

The pursuit of operating a short-term rental in Washington state intertwines closely with the often complex web of tax regulations. Hosts who aim to stay on the right side of the law must acquaint themselves with both state and local tax obligations, which include a range of taxes such as business and operation (B&O), sales, local lodging, and occupancy taxes. Rigorous attention to these tax rules is not just a matter of legal conformity but also a vital aspect of running a credible and trustworthy rental venture.

State and Local Tax Obligations

In the evergreen landscapes of Washington state, short-term rental property owners find themselves facing an array of obligatory taxes. The Washington Department of Revenue requires that every rental operator, who advertises their property or utilizes the services of a property manager, obtain a state business license. In addition, relevant taxes such as B&O and local lodging taxes come into play, depending on the specific location of the rental property. For instance, the combined sales tax—one of the primary tax considerations in Washington—varies between 7.0-9.6%, depending on the county and city.

Indeed, the fiscal responsibility extends beyond mere state requirements, as local jurisdictions have enacted lodging taxes that need careful consideration. Operational finesse includes a clear understanding of these local lodging taxes, which are essential for ensuring that guests are not overburdened yet the state's coffers benefit from the thriving short-term rental market.

Collecting and Remittance of Occupancy Taxes by Platforms

Platforms like Airbnb have stepped into a crucial role when it comes to the responsibilities associated with occupancy taxes in Washington state. In a collaborative effort to streamline tax collection and remittance, Airbnb has been authorized to collect occupancy taxes on behalf of the hosts.

This means that guests who book listings within Washington will see these taxes as part of their reservation costs. Notably, in Seattle, the process is further detailed with the addition of the STR platform fee and other applicable local taxes, which are neatly handled by the platform, rendering the process more manageable for both hosts and guests.

Operators can breathe a little easier knowing that these occupancy taxes are automated in the booking process. However, this does not take away the responsibility of the host to be well-informed and ensure that all other tax obligations are fully understood and met, thereby upholding the fiscal integrity that underpins the vibrant tourism economy of Washington state.

Legal Responsibilities of Airbnb Hosts in Washington

In unlocking the potential of Airbnb in Washington state, hosts must navigate the intricate labyrinth of legal issues and compliance mandates that govern short-term rentals. Clear understanding and adherence to these regulations serve not just as the bedrock for successful host operations but also as a confidence booster for guests seeking secure accommodation.

At the core of these legal responsibilities lie obligatory requirements tied intricately to guest safety. A host's duty extends to maintaining up-to-date contact information for prompt response to any inquiries or incidents, indicative of the commitment to guest support throughout their stay.

Equally critical is the adherence to safety regulations which, among other stipulations in Washington state, encompass the installation of carbon monoxide alarms in compliance with state building codes, securing not just compliance, but also the well-being of guests. Displaying emergency contact details alongside a clear posting of the maximum occupancy limits within each dwelling unit, underscores the importance of clarity and transparency in operations.

Ensuring each Airbnb listing is equipped with clear fire exit routes and emergency plans is not a mere formality, but a legal requirement fundamental to the guarantee of guest safety in Washington.

Hosts are thus custodians of ensuring that each property is compliant not just with the broader strokes of short-term rental laws but also the finer points of guest safety regulations. The meticulous display of well-placed signage guides guests, serving as both an informational aid and a compliance gesture, adhering to Washington's strict safety protocols.

  • Property listings must reflect current licensing requirements.
  • Visible posting of essential contact details and safety procedures is non-negotiable.
  • Readiness to comply with regional nuances in short term rental laws fortifies the host's legal standing.
  • Proactively engaging in the process sets a high standard for both guest assurance and regulatory alignment.

In effect, these responsibilities converge to form a framework within which Airbnb hosts can thrive, creating a hospitable environment that respects both the spirit and letter of the law. It is through consistent adherence to these guidelines that hosts can navigate Washington state's dynamic rental landscape, building not only a flourishing business but ensuring a legacy of trust and safety that resonates with every guest's experience.

Insurance and Liability for Short-Term Rentals

The flourishing market of short-term rentals in Washington state brings forth various considerations for Airbnb hosts, particularly in areas of insurance and liability. These are critical components of legal and financial protection for both the property owner and their guests. Washington state's short term rental laws have clearly outlined what is necessary to keep these rental endeavors compliant, while ensuring that a safety net is in place in the event of unforeseen circumstances.

Mandatory Liability Insurance for Hosts

Owning a short-term rental property in Washington state requires more than just the ability to provide a comfortable stay. Hosts are mandated to carry a substantial amount of liability insurance—to the tune of at least one million dollars. This insurance protects against potential claims that may arise during the course of leasing a property, whether from accidental damage or incidents involving the guests themselves.

The state not only looks out for the welfare of the guests but also reinforces the security of the rental operation through these regulations. As Airbnb hosts navigate through the allure of hosting tourists and travelers, this layer of financial protection plays a significant role in ensuring peace of mind and fostering a sustainable business environment within Washington state’s rental marketplace.

Insurance Coverage Provided by Rental Platforms

In an environment where liability concerns are paramount, platforms like Airbnb provide an added layer of insurance coverage. This empowers hosts to engage in short-term rental activities with confidence, knowing that they are backed by these platforms’ policies in addition to their own procured insurances. Such collaborations between hosts and rental platforms offer a seamless solution, encompassing both compliance with short term rental laws and achieving a gold standard in guest safety and liability coverage.

Through the protection of Airbnb's host guarantee, for instance, property owners are assured that their assets are safeguarded against the vast majority of damages that could occur during a guest's stay. This synergy between personal insurance and platform coverage is what maintains high standards of operation for short term rentals throughout Washington state, making it an attractive region for hosts and guests alike.

In-Depth: Consumer Safety Requirements

In Washington state, a heightened emphasis on consumer safety within the realm of short-term rentals underscores a broader commitment to guest well-being. As prospective and active Airbnb hosts, adherence to Washington state's safety mandates forms the cornerstone of their operational responsibilities. This comprehensive approach to safety goes beyond the basics of hospitality, placing the safeguarding of guests as a paramount concern within the competitive market of vacation rentals.

Protecting Guests with Contact Information and Safety Plans

For those immersed in the business of providing short-term lodging, the provision of thorough contact information and well-delineated safety plans is a key measure of compliance with state regulations. These stipulations are not solely about adhering to legalities; they embody a broader ethic of care and preparedness that anchors the guest experience in security and assurance. A guest's access to reliable points of contact, coupled with explicit safety instructions, empowers them to navigate unforeseen situations effectively, reflecting the host's dedication to upholding the highest standards of consumer safety.

Compliance with Fire Safety and Building Codes

Integral to the fabric of Washington state's short term rental laws is the rigorous enforcement of fire safety and building codes. It is incumbent upon hosts to diligently integrate critical safety features such as carbon monoxide alarms into their properties, aligning not just with regulatory demands but with moral imperatives that prioritize guest safety above all else. Furthermore, highlighting occupancy limits and maintaining accessible fire exits and emergency plans are non-negotiable aspects of rental listings, concrete manifestations of the state's unyielding commitment to protecting those who choose to travel within its borders.

Adherence to these safety codes and regulations is inextricably tied to the reputation and success of Airbnb hosts in Washington. By ensuring that each property meets the explicit requirements set out by state law, hosts fortify their commitment to the well-being of their guests and the sustainability of their rental endeavors, all while fostering a culture of compliance and responsibility in the ever-evolving short-term rental landscape of Washington state.

Conclusion

Mastering Airbnb & Short Term Rental Laws and Regulations in Washington is a critical endeavor for hosts who wish to offer vacation rentals in this diverse state. The essence of a successful rental operation lies in unwavering compliance with the intricate legal guidelines that govern this burgeoning sector. From navigating the detailed zoning laws that dictate where and how properties can operate, to meeting specific licensing requirements clothed in the verbiage of state bureaucracies, hosts have a significant responsibility to uphold the legal framework designed for the safety and satisfaction of guests.

Central to this responsibility is a host's ability to remain abreast of and responsive to the ever-changing landscape of short-term rental regulations. Such diligence ensures not only the legality of their rental offerings but also the ongoing growth and vitality of Washington's tourism sector. Adherence to tax obligations, application of consumer safety protocols, and maintaining the required insurance coverage are non-negotiable aspects of the short-term rental business that, when executed effectively, form the bedrock of trust for both guests and the community.

In essence, the narrative of short-term rental success in Washington revolves around a host's dedication to compliance and their ongoing commitment to understanding the host responsibilities embedded in law. It is a narrative punctuated by the seamless experiences of those who explore the beauty and culture of the Evergreen State through Airbnb. As the industry progresses, the synergy between legal conformity, a host's acumen, and guest satisfaction will continue to write the story of vacation rental triumph in Washington.

FAQ

What are the basic legal requirements for Airbnb hosts in Washington State?

In Washington State, Airbnb hosts must adhere to a combination of state business licensing requirements, pay relevant taxes, and comply with local zoning restrictions. They must also maintain liability insurance or host through platforms like Airbnb that offer such insurance.

Can you name some tourist attractions that make Washington State popular for Airbnb guests?

Washington state is known for its natural beauty and tourist attractions including the San Juan Islands, the Hoh Rain Forest, Mount Rainier, and cultural cities like Seattle, Leavenworth, Bellingham, and Spokane, which are all appealing to tourists and Airbnb guests.

How does Airbnb benefit local communities in Washington?

Airbnb contributes to the local economy by generating additional rental income for property owners and diversifying the lodging options for tourists, which in turn can increase spending in local businesses and support economic growth.

What constitutes a short-term rental in Washington State?

A short-term rental in Washington State refers to any lodging provided for less than 30 consecutive days, which may include vacation homes, apartments, condos, and rooms within houses.

What are the specific Airbnb regulations in Seattle?

In Seattle, Airbnb regulations include a requirement for short-term rental platform fees and more selective zoning restrictions, alongside the standard state business licensing and tax obligations.

Are there any unique Airbnb regulations in Tacoma?

Yes, Tacoma's approach to Airbnb is distinct in requiring that home rental owners must reside on the property when renting out individual rooms, and additional local licensing may be needed.

What zoning restrictions should Washington State Airbnb hosts be aware of?

Washington State Airbnb hosts need to be familiar with local zoning laws which regulate where short-term rentals can operate and may place limits on the type of property and neighborhood where they can function.

What is involved in obtaining a state business license for Airbnb hosts in Washington State?

Hosts need to apply for a state business license, which typically involves proving compliance with local laws, paying any associated fees, and adhering to regulations established by city and county governments.

How do short-term rental platforms help with licensing and tax regulation compliance?

Platforms like Airbnb can assist hosts in Washington State with understanding and fulfilling their tax obligations, and in some cases, the platforms will collect and remit taxes like occupancy taxes on behalf of hosts.

What taxes must Airbnb hosts in Washington State pay?

Hosts in Washington State are obligated to pay state and local sales taxes, lodging taxes, and may have to pay Business and Operation (B&O) taxes dependent on the location and size of their rental business.

What are the mandatory insurance requirements for Airbnb hosts in Washington?

Airbnb hosts in Washington must maintain liability insurance with minimum coverage of one million dollars, or ensure that transactions are conducted through a platform that offers equivalent coverage to protect against potential liabilities.

What consumer safety measures must Airbnb hosts in Washington comply with?

Hosts are required to provide reliable contact information, develop safety plans, comply with fire safety, and building codes, and have carbon monoxide alarms installed to ensure guest safety.

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This post is for informational purposes only and does not serve as legal, financial, or tax advice. Consult your own legal, financial, or tax advisor for matters mentioned here. The information on this site is general in nature. Any description of coverage is necessarily simplified. Whether a particular loss is covered depends on the specific facts and the provisions, exclusions and limits of the actual policy. Nothing on this site alters the terms or conditions of any of our policies. You should read the policy for a complete description of coverage. Coverage options, limits, discounts, deductibles and other features are subject to individuals meeting our underwriting criteria and state availability. Not all features available in all states. Discounts may not apply to all coverages. Steadily is not liable for any actions taken based on this information. If you believe any of this information may be inaccurate please contact us.

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