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

Chapter 3.06 of the Island County Code levies a special excise tax of 2 percent on the sale price or charge for furnishing lodging by any hotel, rooming house, tourist court, motel or trailer camp, and on any similar license to use real property, in unincorporated Island County (§ 3.06.010, adopted by Ord. C-82-01, effective April 1, 1982, per § 3.06.050). 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.

Proceeds go into the county's "public facilities and/or tourism fund" (§ 3.06.020). A credit applies against the county tax for any city lodging tax already collected on the same transaction under Chapter 67.28 RCW (§ 3.06.030), and the Washington State Department of Revenue performs all collection on the county's behalf at no cost to the county (§ 3.06.040). A seven-member Lodging Tax Advisory Committee, chaired by a County Commissioner, reviews any proposed rate increase or change in fund recipients at least 45 days before the Board acts (§ 3.06.060).

Island County also imposes a second, additional 2 percent lodging excise tax under Chapter 3.06A for tourism promotion, layered on the same lodging sales taxed under Chapter 82.08 RCW; combined with all other state and local lodging taxes, the total rate cannot exceed 12 percent (§ 3.06A.030). That additional tax funds the Special Island County/Cities Joint Tourism Promotion Fund (§ 3.06A.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.