Hotel Guest Tax (MRDT) Overview
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The Municipal and Regional District Tax (MRDT) is a provincial program jointly administered by the BC Ministry of Finance, BC Ministry of Tourism, Arts, & Culture, and Destination BC, the crown corporation providing tourism service for the province.
It is an accommodation tax collected under the provincial sales tax legislation on behalf of municipalities, regional districts, or eligible not-for-profit business associations, such as Destination Silver Star for the Silver Star resort area to help fund tourism marketing, programs, and projects. Some designated recipients are authorized to use revenue for other purposes as set out in the regulation such as housing initiatives. Agreements between the province and communities are for 5-year terms.
The MRDT applies to the purchase of accommodation in designated accommodation areas and includes hotels, motels, resorts, bed and breakfasts, houses, cottages and cabins, and other short-term lodging. Spending on tourism marketing, programs, or projects under the MRDT contributes to the increase of local tourism revenue, visitation, and economic benefits at Silver Star.
What is the tax rate? The MRDT level in Silver Star as of October 1st, 2022 is 3% of gross room sales. It is collected by the accommodators and remitted with their PST to the Ministry of Finance.
How are funds to be used? MRDT revenue is allocated to Destination Silver Star for destination marketing. These funds are intended to augment current funding and cannot be used to replace existing sources in a community such as member dues and annual grants. An annual strategic plan, tactical plan, performance report and financial report are required under this agreement.
The province holds back a percentage tax of the remitted tax for administration costs in addition to 2% to fund the provincial Tourism Events Program, a funding source to help communities attract new, major events to the province. Both Destination Silver Star and SilverStar Mountain Resort apply for this annual funding.
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