Council Backs Higher Hotel Tax

Vernon will apply to the province for an increase in its hotel tax.

The city has collected a 2 percent levy from hotel guests since 2010, but wants that increased to three percent.

The revenue is used for tourism marketing and programs.

It raised close to 700-thousand dollars last year.

Raising it by one percent would bring in about 300-thousand dollars more each year

“With the majority of requirements met, City of Vernon staff anticipate that an application would be submitted to Destination BC and the Province in April,” says City Economic Development and Tourism Manager Kevin Poole. “If successful, the 3 per cent MRDT (Municipal Regional District Tax) would come into effect on January 1, 2018, and the agreement would be in place through to December 31, 2022.”

Poole says communities that collect a three per cent MRDT are required to provide 0.2 per cent of the funds to the Provincial Events Program.

“We anticipate that the additional one per cent, of which Vernon would receive 0.8 per cent, would generate an additional $300,000 per year, bringing total MRDT revenue to approximately $1 million annually.”

Photo: Kevin Poole, Vernon’s Economic Development and Tourism Manager