Starting next year, the Regional District of Nanaimo will collect taxes on accommodation providers with fewer than four rooms.
This means online accommodation platforms (OAP) such as Airbnb, will be subjected to a two per cent municipal regional district tax (MRDT) that is collected by accommodation providers in Electoral Areas E, F, G and H, City of Parksville and Town of Qualicum Beach.
The revenue from the MRDT is provided to the Parksville Qualicum Beach Tourism Association (PQBTA) to be used for tourism initiatives. The PQBTA is required to renew this agreement with the RDN every five years. The current five-year term ends in May 2019 and the association has requested the RDN board to approve another five years. It was endorsed by the City of Parksville and Town of Qualicum Beach.
The RDN board, however, was not able to approve the request because of a concern over new provincial legislation that will now allow local governments to apply the additional MRDT revenue collected from rental units with less than four rooms for affordable housing projects.
RDN staff presented an amended recommendation at the RDN board meeting on Tuesday night to support the use of OAPs for housing initiatives and that the regional district facilitate the development of an affordable housing municipal district tax plan in consultation with the City of Parksville, Town of Qualicum Beach and the PQBTA to secure provincial approval prior to November 2019.
Electoral Area E (Nanoose Bay) director Bob Rogers and Parksville Mayor and director Marc Lefebvre did not support the recommendation. Their concern is that the PQBTA is the designated recipient of the MRDT revenue and that “they need it to continue what they’re doing,” said Lefebvre.
RDN chair Bill Veenhof explained that the motion wouldn’t take away the PQBTA as they will still receive the usual revenue except the revenue that will be collected from the OAP which will now be used for affordable housing endeavours.
“But it’s still MRDT money,” Lefebvre argued.
Veenhof said by giving all the money to the PQBTA, the RDN is missing an opportunity for developing a prime source for affordable housing.
Lefebvre said the PQBTA was never consulted about it by staff and that the association has never made any distinction about the new revenues.
General Manager, Strategic & Community Development Geoff Garbutt explained that the province simply targets the OAP revenue to be alloted for affordable housing and not from taxes collected from traditional hotel room that is given to the PQBTA.
The MRDT revenues paid to the PQBTA from the designated accommodation area for 2017 totalled $647,676 — Parksville $524,620, Qualicum Beach, $63,673 and Electoral Areas E, F, G and H $59,383. Garbutt said the PQBTA will continue to receive that amount.
The RDN board deferred decision on the PQBTA request and the staff recommendation.
They asked staff come up with another report regarding the new MRDT revenues.