Thank you, Mr. Speaker. Today I’d like to speak to the matter of a hotel tax again, as I did a few days ago in my Member’s statement.
The concept of implementing a territorial hotel tax was first proposed back in 2000 and has been raised in many forms ever since. Mr. Speaker, even in October of last year it was once again raised and supported in the discussions hosted by the Finance Minister‘s revenue consultation. In early 2010 even the NWT Association of Communities passed a resolution asking the GNWT to grant municipal authority over the hotel tax issue. As many will recall, even a motion was supported by NWT Tourism on this particular matter.
The vision being proposed is quite simple, Mr. Speaker: one, the hotel tax revenue earned in a municipality would be used for local tourism marketing and development; and two, collection of the tax would not reduce GNWT’s contributions to tourism but, rather, enhance the work that’s already being done.
Although I prefer the drafting of this particular authority be drawn up the Department of Finance, however, I know very clearly that a small amendment could be made to the municipality legislation to allow them to do so. Such an amendment would empower municipal governments, if they so chose, to implement a progressive tax opportunity to enhance their tourism activities.
As stated the other day, a hotel tax is a very common thing across Canada and if a tax was implemented in the Northwest Territories at 1 percent, last year it would have garnered over $200,000 of new money, Mr. Speaker.
Municipalities in partnership with NWT Tourism know best how to attract tourists to their communities. Mr. Speaker, this type of levy would enhance that activity to let them do so. Many of our municipal governments have proven themselves time after time that they have the ability and certainly the know-how of how to manage their own affairs better than anyone else. Accordingly, this government should find ways to work to empower these communities in a manner that allows them to find new revenue sources rather than hold them back.
Mr. Speaker, clearly, providing legislation to allow municipalities to collect a hotel tax is a good thing, so, Mr. Speaker, let’s give them the choice. I urge the Minister of Municipal and Community Affairs to put forward a progressive opportunity to allow legislation to be amended that would allow them to have the authority to make a hotel tax if a municipality so chose to. Thank you.
