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Island County, WA Hotels & Lodging: Transient Occupancy Tax (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Base lodging tax rate
2% (Sec 3.06.010)
Additional tourism tax
2% more (Sec 3.06A.010)
Combined rate cap
12% total (Sec 3.06A.030)
Tax collector
WA Dept. of Revenue
Fund
Public facilities/tourism fund
Taxable stay length
Under 1 continuous month
Effective date
April 1, 1982

Summary

Hotels, motels, tourist courts and trailer camps in unincorporated Island County pay a 2 percent lodging excise tax on every stay under one month, under Island County Code Chapter 3.06. The Washington Department of Revenue collects the tax at no cost to the county, crediting proceeds to the county's public facilities and tourism fund.

These county ordinances apply to unincorporated areas of Island County. Incorporated cities within the county may have their own rules that take precedence over county-level regulations.

There is hereby levied and there shall be collected a special excise tax of two (2) percent of the sale price or charge made for the furnishing of lodging by any hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property, within Island County; provided, that it shall be presumed that the occupancy of real property for a continuous period of one (1) month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same. ... Pursuant to RCW 67.28.200, the State Department of Revenue shall perform the collection of this tax on behalf of Island County at no cost to the county.

Full Breakdown

010, adopted by Ord. 050). The code presumes that occupancy for a continuous period of one month or more is a rental or lease, not a taxable license, so shorter stays are what the tax reaches. 020). 040). 060). 030). 040). Hotel operators inside Oak Harbor, Coupeville or Langley pay under those cities' own lodging tax ordinances instead; this chapter reaches only unincorporated Island County.

Violations & Fines

Chapter 3.06 itself sets no separate penalty; the Washington Department of Revenue enforces the tax as part of its standard state tax-collection authority under Chapter 82.32 RCW while administering it for the county at no cost (§ 3.06.040). The companion additional lodging tax in Chapter 3.06A carries its own misdemeanor penalty: any violation is punishable by a fine up to $1,000, up to 90 days in jail, or both, with each day of noncompliance a separate offense (§ 3.06A.070).

Frequently Asked Questions

What is the hotel lodging tax rate in unincorporated Island County?
Island County levies a base 2 percent excise tax on hotel, motel, tourist-court and trailer-camp charges under Code Sec 3.06.010, plus an additional 2 percent tourism-promotion tax under Sec 3.06A.010, for a combined 4 percent. State law caps the total of all stacked lodging taxes at 12 percent under Sec 3.06A.030.
Who actually collects Island County's lodging tax?
The Washington State Department of Revenue collects the tax on the county's behalf at no cost to the county, under Island County Code Sec 3.06.040, applying the same administrative rules it uses for state sales tax under Chapter 82.32 RCW.
Do stays of a month or longer owe this tax?
No. Section 3.06.010 presumes that occupying real property for a continuous period of one month or more is a rental or lease rather than a taxable license to use the property, so only shorter stays fall under the lodging excise tax.
What is the lodging tax revenue used for?
Proceeds from the base 2 percent tax go into Island County's public facilities and/or tourism fund under Sec 3.06.020, while the additional 2 percent tax funds the Special Island County/Cities Joint Tourism Promotion Fund created by Sec 3.06A.040 for tourism-related facilities and promotion.

Sources & Official References

Other rules in Island County

All Island County rules

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