Hotel tax moves ahead

Published: February 26, 2009 6:00 PM Richard Rolke - Vernon Morning Star

A new tax that’s aimed at enhancing Vernon’s role as a tourism destination is moving ahead. On Monday, council gave three readings to a bylaw that would create a hotel and motel room tax. “It’s something the industry’s been looking at for quite some time,” said Mayor Wayne Lippert. The primary thrust of the two per cent tax will be to increase marketing. “It will mean a larger budget to promote the area and bring people here,” said Lippert. It was originally forecast that the room tax could generate about $420,000 a year, although that figure could be lower because of the recession and fewer people travelling. The budget for the previous tourism function under the North Okanagan Regional District was $120,000. Along with marketing, some of the tax revenue could go towards constructing a convention centre or a sports complex. “It allows us to provide better services,” said Michelle Jefferson, the city’s tourism manager. While some accommodation owners were initially concerned that a local hotel tax could chase customers away, Jefferson isn’t concerned that will be the case. “Most other communities in the Okanagan have this tax,” she said. Because the bylaw will need official approval from the provincial government, the new tax may not be official until Sept. 1. Once the tax is in place, it will only apply to accommodations within the City of Vernon. But there have been some discussions to expand the levy to Silver Star Mountain. “They understand what promoting the area means,” said Lippert of Silver Star.