Tourist Accommodation Tax Relief

Year
2011
Category
Taxation
NCLGA Ref#
B34
UBCM Ref#
B121

Status

Endorsed by the NCLGA Membership - Defeated by the UBCM Membership

Details

WHEREAS property assessments for tourist resorts continue to rise, making the viability of operating such businesses very limited;

AND WHEREAS in 1996, the Province of British Columbia introduced the Tourist Accommodation (Assessment Relief) Act to provide an exemption of up to $150,000 of assessed value in order to provide some relief for owners of tourism accommodation;

AND WHEREAS the exemption limit has remained unchanged over the fifteen years since the introduction of the Act despite increasing assessments:

THEREFORE BE IT RESOLVED that the NCLGA AND UBCM lobby the Province of British Columbia to increase the exemption limit in the Tourist Accommodation (Assessment Relief) Act for Class 6 properties to enable owners of these properties to survive the economic downturn that British Columbia continues to face.

Background Information

In many parts of British Columbia, property assessments have risen astronomically in recent years for owners of small resorts. The economic downturn has further reduced an already seasonal business operation for owners of small resorts, creating an imbalance between property taxes due and business revenue received. Tourism BC statistics show 74 campgrounds closed while BC Statistics showed that the number of recreational lodge properties in some regions had decreased by as much as 33 percent between 1999 and 2006. This situation is highlighted in the South Cariboo where approximately 17 resorts have closed in the last six years.

Resorts are being sold off and converted to recreational strata properties with a loss of tax dollars as the converted properties are now assessed at residential rather than business rates. The loss of tourism dollars is also affecting many other local small businesses.