Oak Harbor Approves New B&O Tax to Fund Marina Repairs
On November 18, 2025 the Oak Harbor City Council approved the citys first business and occupation tax to help pay for dredging and repairs at the city owned marina. The measure exempts businesses with gross receipts under four million dollars, a design intended to protect small firms and raise about eight hundred eighty thousand dollars annually for marina work.
Oak Harbor city leaders voted on November 18 to create a business and occupation tax, commonly called a B&O tax, targeted specifically to cover dredging and repair costs at the city owned marina. Councilmembers approved the proposal in a 5 to 1 vote after weighing several alternatives, and set a threshold that will not apply to firms with gross receipts below four million dollars. The council estimated the tax would affect roughly twenty nine businesses while generating about eight hundred eighty thousand dollars a year for marina maintenance.
Debate at the council considered other funding approaches, including a lodging tax, a utility tax, and direct dredging fees, before settling on the B&O route. Councilmembers framed the decision around limiting the fiscal burden on ratepayers and smaller businesses, and signaled that the vote could prompt further conversations about marina financing and capital priorities in coming months.
For Island County residents, the decision carries practical implications. Dredging is central to keeping marina channels navigable for commercial and recreational vessels, and timely repairs safeguard public access and local waterfront commerce. The new revenue stream aims to provide predictable funding for maintenance that has statewide and international parallels, since coastal communities from the Pacific Northwest to Europe and Asia face rising costs to sustain maritime infrastructure.
The tax design seeks to balance revenue needs with business competitiveness. By exempting firms with less than four million dollars in gross receipts the city narrowed the fiscal impact to a relatively small set of larger businesses, while preserving the intended funding level. City officials projected the measure would raise roughly eight hundred eighty thousand dollars annually, an amount intended to support routine dredging cycles and ongoing repairs without tapping utility rate increases or one time assessments on residents.
The council vote does not close debate about long term marina investment. Officials noted the decision may lead to additional funding discussions and priorities. Residents and business owners should expect public meetings and budget briefings as the city moves from approval to implementation and as officials refine spending plans for the marina work.
Oak Harbor joins a broader group of municipalities rethinking how to fund essential coastal infrastructure in an era of constrained budgets and rising maintenance costs. For local stakeholders, the measure represents a choice to direct business contributions toward sustaining waterfront access and commerce while shielding smaller businesses and household ratepayers from immediate new charges.
