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Sooke accommodation tax sparks controversy

New tax geared toward rental properites
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Accommodations like this treehouse-style one in East Sooke are included in a proposal for a hotel tax. (Contributed - Airbnb)

Critics of a new regional tax proposal arenB次元官网网址檛 married to the idea, who gets to vote on it, or where the revenue will be allocated.

The District of Sooke has been collaborating with Destination BC and other stakeholders for the past eight months on implementing a three per cent provincial accommodation tax that would encompass Metchosin and the region from Sooke to Port Renfrew.

According to Gail Scott, economic development officer for the District of Sooke, once the Major Events Municipal and Regional District Tax (MRDT) is in place, it will be charged on all fixed-roof, short-term rental properties regardless of size and revenue, although only properties with four or more rooms will be allowed to vote on the tax.

Bed and breakfast owner Mike Hicks has vowed to do his best to defeat the initiative.

B次元官网网址淚t will take 50 plus one per cent for this to pass, yet only those with four or more rooms get to vote,B次元官网网址 he said. B次元官网网址淚tB次元官网网址檚 a huge hassle, and they (those with less than four rooms) canB次元官网网址檛 vote on this tax. How fair is that? Everyone IB次元官网网址檝e talked to so far is against it. ThereB次元官网网址檚 no way I can support this for that reason alone.B次元官网网址

Hicks said accommodation providers with only one room whose guests book directly with them, for example, will have to collect and remit the tax to the provincial government, which he believes will be a cumbersome process for some.

ALSO READ: SookeB次元官网网址檚 regional hotel tax proposal gains momentum

Hicks also takes issue with the fact that the money raised through the tax can be are earmarked for uses other than tourism or economic development, including affordable housing.

B次元官网网址淎renB次元官网网址檛 we paying enough taxes already?B次元官网网址 asked Hicks, who served as electoral area director for Juan de Fuca for 14 years.

B次元官网网址淭ax hikes affect our competitiveness, and our guests pay more than enough taxes already. They say we need to promote tourism in Sooke, but we donB次元官网网址檛 need it because our businesses and other organizations like Airbnb, the Chamber of Commerce, Expedia do a great job of that and we donB次元官网网址檛 need governmentB次元官网网址檚 help.

B次元官网网址淚 want to get away from politics, but I feel strongly about this issue,B次元官网网址 Hicks said.

Scott said there has been a lot of questions about the tax from regional and local accommodators.

B次元官网网址淭his flurry of MRDT responses is a good thing because we do want people to ask questions, get involved and to provide feedback,B次元官网网址 Scott said. B次元官网网址淗owever, we do want to ensure that correct information is being provided to them.B次元官网网址

She said the only exception to the MRDT is for properties on Indigenous lands and properties that are renting long term, which is defined as around 25 days.

One of the first steps in the MRDT process will be community and industry engagement, with 4VI, formerly Tourism Vancouver Island, leading that work, Scott said.

Phase 1 will involve momentum building and scope that will include a tourism system planning meeting, one-on-one interviews, and a recommended report.

Phase 2 will include background research, a stakeholder workshop, a working group session, preparation of an up-to-date accommodation directory, a communication framework document, and a website notice, while Phase 3 will include a draft five-year strategic plan and a draft one-year tactical plan, targeted distribution of the plan, and another stakeholder information session.

The final phase will include review and approval of a final five-year strategic business plan, a one-year tactical plan, and the delivery of all required MRDT documents.

Proponents of the tax stressed that the hotel tax will not be used to support the services of a community business support service investment co-operative from Sooke to Port Renfrew, which is a completely separate project that is in the exploration stage to determine viability.

Check in at destinationbc.ca/what-we-do/funding-sources/mrdt/faq for more information.



About the Author: Rick Stiebel

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