P.A. hotel tax levy upsets Chamber CEO

By Juliet Kadzviti
May 1, 2016 - 6:00am

Attracting big events to the city is coming at a cost for local hotels.

City council approved a new bylaw on April 25, adopting a Destination Marketing Levy that allows for the city to increase taxes on hotel properties. The amount taxed depends on the assessed value of the properties, ranging from $3,500 to $56,100.

Calling the decision disappointing in a release, Prince Albert and District Chamber of Commerce CEO Larry Fladager said the levy is unfair to local businesses.

“For local businesses already saddled with the highest commercial tax ratio in the province, the Destination Marketing Levy is yet another tax that hampers business growth and makes it harder to do business in Prince Albert,” he said.

The city will receive almost $300,000 in revenue from the levy, said Jim Toye, city manager.

He said the money will be put in a fund and used to attract big events to the city.

“The idea is, these aren’t going to be traditional one-day events. A good example is obviously, the 2018 World Junior Fastball Championships that will be bringing people here for a week and so we’re hoping the event will [last multiple] days.”

Toye said hotels have an option to earn the money they were taxed back.

“Each of these facilities have an opportunity to charge an additional fee on their facilities to recoup that expense,” he said.

A special committee will be in charge of deciding which proposed projects will go to city council for approval.

-with files Nigel Maxwell

 

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Twitter: @julietkadzviti 

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