Town of Osoyoos Council has approved a recommendation to increase the local accommodation tax charged to visitors using local hotels and motels to three per cent from the present two per cent. Destination Osoyoos must still submit the request for approval by the province after stakeholders are consulted. (Richard McGuire file photo)
Town of Osoyoos council have approved a recommendation to increase the local accommodation tax charged to visitors using local hotels and motels from two to three per cent.
This move is expected to generate an additional $100,000 annually for Destination Osoyoos, the town’s tourism and marketing promotion organization, which is also in charge of economic development.
Twenty per cent – or $20,000 – of that money, however, is expected to be transferred to a provincial pool shared by resort municipalities in B.C.
On Monday, council officially adopted a motion to approve an application by Destination Osoyoos to apply to the provincial government to increase the Municipal and Regional District Tax (MRDT) from two to three per cent.
The MRDT was introduced in B.C. in 1987 to provide funding for local tourism and marketing programs and projects, said chief administrative officer Barry Romanko, during a presentation to council on Monday.
“This tax is intended to help grow B.C. revenues, visitation and jobs and amplify B.C.’s tourism marketing efforts in an increasingly competitive marketplace.”
Many other municipalities in B.C. have increased the MRDT from two to the maximum three per cent allowed under provincial legislation.
The Town of Osoyoos has already submitted a detailed application asking for the increase to three per cent and will be renewed at the new rate for five more years once adopted, said Romanko.
Destination Osoyoos is formulating a strategy to seek stakeholder approval to increase the MRDT.
It’s expected the new three per cent tax, once approved, would come into effect in 2018.
This story corrects an earlier version.
KEITH LACEY
Osoyoos Times
