Door County’s room tax continues to serve as a key funding source for tourism promotion, local municipalities and community development, according to Destination Door County.
The county’s room tax rate is 8%, applied to short-term lodging stays of less than 30 days. Under Wisconsin law, at least 70% of the revenue must go to a designated tourism entity for promotion and development, while the remaining 30% returns to the municipality where the tax is collected for unrestricted use.
In 2025, room tax collections totaled $8.68 million. About $6.08 million went to Destination Door County, while municipalities received $2.6 million.
“This structure ensures that visitors are helping fund the very experiences and infrastructure they come here to enjoy,” said Jon Jarosh interim President and CEO of Destination Door County. “It also provides meaningful financial support to our local communities.”
Municipalities have broad discretion in how they spend their share, often using the funds for emergency services, infrastructure improvements, parks and other public needs.
Door County room tax increased significantly from 2007 to 2025, with room tax totals rising from about $2 million to over $8.6 million last year. This means municipalities went from receiving approximately $600,000 to more than $2.6 million annually since the tax was initiated.
Destination Door County also reinvests funds through additional programs, including a municipal reimbursement initiative that provided approximately $376,000 in recent years for community improvement projects. The organization’s Community Investment Fund continues to expand, awarding more than $370,000 in its latest 2025 grant cycle and surpassing $3.1 million in total investments across 59 projects since the program launched in 2023.
“Our goal is to reinvest visitor dollars in ways that strengthen both the visitor experience and the quality of life for residents,” Jarosh said. “These programs allow us to support projects that have long-term benefits for the entire county.”
Jarosh says the room tax helps sustain Door County’s tourism-based economy by supporting jobs, generating tax revenue and maintaining amenities enjoyed by both visitors and residents. State law currently limits tourism funding mechanisms to lodging taxes, with no comparable tax applied to other tourism-related sectors.
