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  • BC Government News: Additional Major Events Municipal and Regional District Tax (MRDT) Consultation

BC Government News: Additional Major Events Municipal and Regional District Tax (MRDT) Consultation

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Posted on October 27, 2023

 

Details from the BC Government news release:

A new Major Events Municipal and Regional District Tax (MRDT) of up to 2.5% on short-term accommodation sales may be available to communities.

The purpose of this tax is to help cover the cost of planning, staging and hosting eligible major international tourism events that generate significant international visitation and help bolster provincial tourism and the economy. The Major Events MRDT program applies to:

  • Municipalities
  • Regional districts, and
  • Eligible entities (non-profit organizations actively engaged in tourism marketing, programs or projects, or affordable housing initiatives)

Under the Provincial Sales Tax Act, there are certain requirements to be eligible for the Major Events MRDT, namely:

  1. The Minister of Finance is satisfied that there is to be a major international tourism event intended to generate significant international visitation and help bolster provincial tourism and the economy in or near the proposed designated major event accommodation area; and
  2. The Minister charged with the administration of the Tourism Act has, on behalf of the government, entered into an agreement with the municipality, regional district or eligible entity respecting the tax.

The province is currently developing the program requirements and application process that will be applicable to the new Major Events MRDT program, namely:

  • Defining what is an eligible major international tourism event
  • How the revenues can be spent, and
  • Reporting requirements

The program requirements and application process will be developed by the Ministry of Finance, Ministry of Tourism, Arts, Culture and Sport, and Destination BC in consultation with local governments and the tourism and accommodation industry.

Learn more and read the full government program details: https://www2.gov.bc.ca/gov/content/taxes/tax-updates/spotlight-on-tax-and-benefit-programs/additional-major-events-mrdt-consultation

 

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