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Council supports room tax

Funds would be directed to regional marketing

City of Powell River council has agreed to support a tax initiative that would generate sustainable tourism funding.

Sunshine Coast Tourism (SCT) is applying to the provincial ministry of finance to implement a two per cent municipal regional district tax, which would be charged on sales of taxable accommodation in the Powell River and Sunshine Coast regional districts.

If the proposal is successful, accommodation providers that have four or more rooms would be collecting the tax. The organization needs both a majority vote of the number of accommodation providers and a majority of the room count. There are approximately 55 to 60 accommodation providers and 900 rooms in the region. As well, SCT needs letters of support from each of the local governments in the region to go along with the application.

City council unanimously passed a motion at the April 5 meeting to issue a letter of support for the initiative.

Councillor Russell Brewer, who is also the president of Tourism Powell River, said if the tax is implemented, the funds would be used for regional destination marketing. “It’s used for marketing for the entire region,” he said. “Currently, the Sunshine Coast area is at a disadvantage relative to most other areas of the province, because it’s implemented pretty much across the province, except here and perhaps one other location.”

Councillor Chris McNaughton pointed out that SCT has assured council that particular attention will be given to the importance of marketing Powell River specifically.

SCT estimates the tax will generate $255,000 annually for the development and promotion of tourism. It would administer the funds using an 80-20 funding formula, with 80 per cent being retained by SCT for regional initiatives and 20 per cent being directed to local projects. Allocation of the local funds will be made through an application process.

If approved, the tax would remain in place for five years, with renewal requiring a re-application process involving consultation with and support of the accommodation sector.