People staying in many of the hotels in Vernon will be paying a bit extra to the municipality next year, which could bring an additional $300,000 to city coffers annually.
The provincial cabinet has approved the City of Vernon’s application to collect a three per cent municipal regional district tax, also known as a hotel tax, according to the Ministry of Finance. Currently, hotels collect two per cent. The change in tax will occur on Jan. 1, 2018.
While the city will get the bulk of the extra funding, a small percentage goes to a provincial tourism program.
“The additional revenue, estimated to be $300,000 annually, will assist the City of Vernon in its marketing efforts,” said a press release.
The number of stays in Vernon has climbed in recent years, with the city a popular destination throughout the Thompson Okanagan region.
“This strong growth has continued into 2017, with room revenue up 8.3 per cent as of the end of July 2017.”
Last year, the city collected just under $700,000 in hotel tax.
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