A new tax has been approved by the BC government for the Town of Sidney, which will levy taxes on short-term rentals in the area.
Those taxes then go towards improving tourism in the region.
The Municipal and Regional District Tax (MRDT), or Hotel Tax, is an optional tax that municipalities can opt into, if supported by the local tourism industry.
For Sidney, implementing this tax was spearheaded by the Sidney Hotel Group, in partnership with the Sidney Business Improvement Area Society (Sidney BIA).
The up-to 3% tax will be applied to all short-term rentals, including hotel stays.
This funding would be distributed back into Sidney’s tourism sector, to give more reason for visitors to stay in Sidney, despite the slightly higher hotel rates.
However, Sidney isn’t the only municipality in Greater Victoria where the tax has been implemented previously.
Victoria has a 3% MRDT, whereas Oak Bay, Saanich, Langford and the Southern Gulf Islands all have a 2% MRDT.
Sidney has set their MRDT at 3%, and it is expected to garner around $410,000 annually.
“This is a significant step forward for Sidney’s tourism economy,” said Morgan Shaw, Executive Director, Sidney BIA.
“Thanks to the leadership of the Sidney Hotel Group and the collaborative spirit of the broader tourism community, the MRDT will create meaningful new opportunities to promote Sidney and support our local economy.”
The Sidney MRDT will come into effect this summer, and will be applied to all motel, motel and inn stays.
