A new Major Events Municipal and Regional District Tax (MRDT), of up to 2.5% on short- term accommodation sales can help communities cover the cost of hosting major international events, that help bolster provincial tourism and the economy. Communities hosting major international events need additional revenues to be able to plan, stage and host those events and reap the long-term economic benefits.
The Major Events MRDT is a time-limited, dedicated funding tool that communities will be able to apply for through Destination BC. Communities will need support and prior approval from the Minister responsible for tourism and the Minister of Finance to help ensure the tax is dedicated and applied as intended, that it is time-limited, and that it is subject to public reporting and transparency. The Ministry of Finance will be working closely with the ministry responsible for tourism and Destination BC to develop policies and an application process so that communities can apply to have a Major Events MRDT collected within their jurisdictions where appropriate. Limited information is available at this time. If you have questions, please reach out to MRDT@Destinationbc.ca.
This isn’t a new concept. In 2007, the Province introduced a temporary 4% Resort Area Tax – on top of the existing 2% accommodation tax – to help the Resort Municipality of Whistler pay its costs for hosting the 2010 Olympic and Paralympic Winter Games. The City of Vancouver has asked the Province to temporarily raise the MRDT charged on purchases of accommodation within the city, to help pay for the City’s costs of planning, staging, and hosting FIFA 2026 matches. The Province is currently working with Vancouver on how the new Major Events MRDT could be applied within the City.
A key goal of this new legislation is to provide communities with access to a tool, to help cover the cost of hosting major international events in their communities.
Full news release available here: https://news.gov.bc.ca/releases/2022FIN0068-001626
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