Penticton council approves bylaw adding a 1 per cent hotel tax increase

Photo: Hotel Penticton

Penticton City Council voted unanimously in favour of passing the municipal and regional district tax (MRDT) bylaw for a 1 per cent tax increase on Tuesday.

Previously, council had chosen to shoot down a request from Travel Penticton Society to become the designated recipient of the hotel room tax, but did support the motion to increase the tax from 2 to 3 per cent on temporary-stay units.

The hotel room tax could generate an additional $250,0000 annually and would come into effect on July 1 2022 , lasting through June 30, 2027.

Councillors also approved for online accommodation funds to be allocated by the city towards affordable housing.

Funds collected through the MRDT are designated specifically for local tourism marketing, projects and programs to help grow revenues and jobs in tourism-centric locations in British Columbia.

Councillors will be giving the official reading for the bylaw adoption on Thursday.