GNWT starts moving on hotel tax
Northern News Services
Wednesday, September 20, 2017
SOMBA K'E/YELLOWKNIFE
After years of lobbying, the Department of Municipal and Community Affairs is starting to move on legislation that would allow the city to implement a hotel tax.
The accommodation levy would add a fee of between one and five per cent to the cost of hotel rooms, which the city estimates could garner between $750,000 and $1.5 million a year. The city has long been hoping to be able to implement this tax to fund its destination marketing plan, but needs amendments to the Cities, Towns and Villages Act to make it happen.
On Monday, administration proposed a city takeover of visitor information services in partnership with the Department of Industry, Tourism and Investment, from Oct. 1 through the end of March.
City officials could use the accommodation levy to help fund these services once GNWT funding dries up.
The department's deputy minister Eleanor Young says her department is currently doing consultations with elected officials, senior staff, chambers of commerce and the hotel association, and so far the idea has received "cautious support."
"They have some ideas of what might work, what might not work going forward, but generally what we're hearing from them is they would like to see us make that change," she said.
In the past, she said, there had been discussion about an entirely separate piece of legislation or major changes. This time around, she said the approach is "a fairly minor amendment" to the act.
Affected organizations have until the end of the month to share their thoughts with the department.
Young said a report with the department's findings will be released in late October or early November, adding she is not sure if the legislation change will be in place by the end of March, when the city's takeover of visitor services is scheduled to end.
"Once we get into drafting of a bill, the timeline is really out of our control," she said. "So we're optimistic I think that we're moving ahead in good time but I can't say for sure when it would be in place."
The city declined to comment on the details of the levy, such as which properties would be charged and who might be exempt, or if there would be a maximum amount the city would be able to collect.
Kerry Penney, director of policy, communications and economic development for the city, stated in an email to Yellowknifer the legislation would dictate those details.
