Written by Mark Nielsen
Citizen staff
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Tuesday, 03 November 2009 |
The final legislative hurdle has been cleared for establishing a two-per-cent tax on the rates visitors pay to stay in the city's hotel and motel rooms.
The provincial government passed an order in council on Oct. 22 approving the tax, which is to come into effect on Jan. 1.
Revenue from the tax is expected to add up to $480,000 in 2010 and, along with the city's annual $327,000 to tourism promotion, will make up a significant chunk of a $863,000 budget dedicated to getting the city's name out according to a one-year business plan.
Next steps include appointing a new board to oversee how the money will be spent. It will consist of six directors appointed by the Prince George Accommodations Association, four appointed by the city, one each to represent city administration, and the attractions, food and beverage and transportation sectors, and one appointed by IPG.
As well a search has been launched to find an executive director.
More than 45 other B.C. communities have a similar tax in place to finance local "destination marketing organizations," according to the business plan.
As they have in the past, city council members continued to praise the initiative when an update was presented to them on Monday night,
"This is truly a good-news story," Coun. Dave Wilbur said. "We are catching up with other communities that have had their marketing assisted by visitors coming in and paying this tax.
"It's not a tax that's going to have to be forked out by our local people, it's the people that are traveling and, as I say, other communities have had this for a number of years and it's time that we had the playing field leveled."
However, Wilbur also said he hoped the director appointments will include representation from parts of the local industry who opposed the tax.
In the process of winning council's initial support for the tax, and subsequent approval from the provincial government, expressions of support were gathered from 57 per cent of the hotels and motels representing 67 per cent of the rooms.
The tax will come in addition to the eight per cent in sales tax the provincial government currently imposes on hotel rooms -- three percentage points of which is used to fund Tourism British Columbia, the province's tourism promotion branch.
The tax will come in addition to the eight per cent in sales tax the provincial government currently imposes on hotel rooms -- three percentage points of which is used to fund Tourism British Columbia, the province's tourism promotion branch -- and the five-per-cent federal sales tax.
The local tax will also continue when the harmonized sales tax comes into effect on July 1, 2010, which in turn will lower the provincial rate to seven per cent and it's yet not clear how much of that will be designated for tourism.
Provincial legislation that provides for both the provincial and local hotel room tax was to be repealed on July 1, 2010 with the start of the HST, but the province has since moved that date for repeal back by a year.
Initiatives Prince George vice president Kathie Scouten said she's confident the local tax will continue with the new legislation.
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Last Updated ( Tuesday, 03 November 2009 )
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