Hotel Tax Could Be Coming
Posted on 28 April 2005 by admin
DO continues to push new hotel tax bylaw
Adoption of the two per cent hotel tax for Osoyoos may be just a matter of time.
Osoyoos Town Council passed a resolution at last Monday night's council meeting to give the Additional Hotel Room Tax (AHRT) Bylaw three readings.
Councillors Ken Davreux and Dick Flintoft expressed concerns about how the Tourism Advisory Committee (TAC) will be formed and wanted a firm understanding of how the money generated will be used by the TAC.
At the meeting, Davreux made a motion that the Town of Osoyoos and Destination Osoyoos arrive at a memorandum of understanding of how the money will be handled by the TAC .
Mayor John Slater stated that 71 per cent of hotel owners were in favour of the tax, although controversy still swirls around the proposal.
Osoyoos Hotel/Motel Association President Joe Robinson said that a committee is working on some concerns regarding the AHRT and will be releasing a statement soon.
The purpose behind the tax is to generate money that will eventually flow back exclusively into tourism initiatives to further promote Osoyoos as an all-season destination.
The funds will be controlled by a tourism advisory committee (TAC) that will oversee how the money will be used. The TAC will be made up primarily by members of the hotel/motel industry but will include individuals from other tourism-related industries.
The Town of Osoyoos recently requested that Destination Osoyoos investigate and bring forward the hotel tax project, and at the Monday council meeting, DO Chairman Arnie Polischuk submitted DO's report. The report directly addressed questions or concerns regarding the TAC.
The Town of Osoyoos had also raised a question about whether the Fee for Service agreement between the town and DO requires negotiation of reduced funding while the AHRT is in place to fund destination marketing purposes.
In response, Polischuk stated in his report that the town should not reduce funding as it would negatively affect other functions provided by DO that are not directly related to tourism.
Another concern addressed by the town was an amendment to guarantee AHRT funds will be controlled by the tourism industry through the TAC.
Polischuk stated in his report that, because the TAC is not a legal entity but is instead a committee of an accountable society, DO is ultimately responsible for any funds used by the society.
Polischuk went on to state that the Town of Osoyoos' implication is that despite DO's assurances the TAC will be making the decisions, there is some question as to the DO board's motivations for this initiative. He further stated the town's implication is that DO is not considered to be part of the tourism industry, an implication DO finds puzzling.
Other municipalities which have already adopted or are set to adopt the AHRT include Pentiction, Kelowna, Merritt and Kamloops.
The last section of the bylaw states:rnThe funds paid to the Town of Osoyoos under the provisions of the regulation shall be applied to destination marketing programs and projects that are developed by the Destination Osoyoos Development Society.




