Penticton council reviewing over possible 1 per cent hotel tax increase

Hotel tax could increase

Penticton City Council will be deciding whether or not to approve the municipal and regional district tax (MRDT) bylaw to impose a 1 per cent tax increase on Tuesday.

Back on Aug. 17, Council chose not to support Travel Penticton Society’s request to become the designated receipt of the hotel room tax, but did support the motion to increase the tax from 2 to 3 per cent on temporary-stay units

Councillors also approved for online accommodation funds to be allocated by the city towards affordable housing.

Since council shot down Travel Penticton’s request back in August, staff will be working with the society to develop a fee for the service contract work within the 2022 budget. The fee for the service contract will be allocated for destination marketing, convention bureau and visitor services.

The tax will continue to be collected by the province, under the authority of the city's bylaws, remitted to the city and then transferred to Travel Penticton for the society’s work.

Travel Penticton also received annual funding of $300,000 from the city during the pasty five year agreement.

The increased hotel room tax is estimated to bring in an additional $250,0000 annually.

Funds collected through the MRDT is designated specifically for local tourism marketing, projects and programs to help grow revenues and jobs in tourism-centric locations in British Columbia.

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