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More B.C. Areas Implement Municipal Regional District Tax on Short-Term Accommodations

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The pandemic has spawned a thirst for marketing dollars, stated the recent Provincial Sales Tax (PST) 120 Bulletin of the government of British Columbia. This has led some areas to raise the Municipal Regional District Tax (MRDT) rate from 2% to 3%, while others are beginning to collect MRDT and some areas are expanding their boundaries.

On top of the 8% PST on short-term accommodation rentals, the up to 3% MRDT applies on behalf of municipalities, regional districts, and eligible institutions to sales of short-term accommodation provided in participating areas of British Columbia.

According to the PST bulletin, the tax is imposed in participating areas to generate revenue for tourism marketing, programs, and projects.

To view the list of taxable and exempt accommodations, click here.

Last month, Bulletin PST 120 Accommodation was revised to add the Hornby Island Local Trust Area of the Comox Valley Regional District to the list of areas collecting 3% MRDT from June 1.

Meanwhile, from July 1, the City of Penticton, Town of Port McNeill, and Village of Alert Bay will increase their MRDT rate from 2% to 3%. 

The same goes for parts of the Columbia Shuswap Regional District consisting of the Town of Golden, Kicking Horse Mountain Resort area, and Electoral Area A (not including Yoho National Park), as well as the Regional District of Mount Waddington consisting of the Village of Port Alice and Electoral Areas A, B, C, and D.

As for the part of the Regional District of East Kootenay consisting of the Village of Radium Hot Springs and two portions of Electoral Area G, the MRDT rate will increase to 3% from August 1, and participating areas will now also include all Electoral Area G.

The maximum MRDT rate is 3%. To hike up the rate in their area, participating municipalities, regional districts, and eligible entities must submit an application to Destination BC. Moreover, a tax rate increase will only be effective after an application has been approved by regulation.

For a complete list of communities collecting MRDT, see pages 22-25 of the

Bulletin PST 120, Accommodation.

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Modern Campground

Modern Campground

Modern Campground is the most innovative news source in the Outdoor Hospitality industry. We provide global news coverage for RV Park and Campground owners, operators, managers, and their team members.
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Hi, you might find this article from Modern Campground interesting: More B.C. Areas Implement Municipal Regional District Tax on Short-Term Accommodations! This is the link: https://moderncampground.com/canada/british-columbia/more-b-c-areas-implement-municipal-regional-district-tax-on-short-term-accommodations/