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Opinion: Sask. government can’t let mayors impose hotel taxes

Making everyone pay more for hotel rooms is not how to get people to visit your city.
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A hotel tax means that every time you and your family head to Saskatoon for a concert or hockey tournament, or drive to Regina for Agribition and stay over night, you’ll get hit with a new tax.

The last thing anyone in Saskatchewan needs is another tax to pay. Apparently, someone needs to tell the politicians at the legislature.

Until recently, the Saskatchewan government had an online survey out asking whether it should let municipalities to charge a new “accommodation” or hotel tax.

Right now, The Cities Act, municipalities can not impose a hotel tax. The provincial government would need to change the law to allow it.

A hotel tax is something that specifically the city of Saskatoon has about using to fund its new proposed downtown arena and entertainment district. But that doesn’t mean that other municipalities won’t take advantage of it if given the opportunity.

A hotel tax means that every time you and your family head to Saskatoon for a concert or hockey tournament, or drive to Regina for Agribition and stay over night, you’ll get hit with a new tax. Any mayor that wants a hotel tax is punishing you for making a trip and bringing your business to their city.

Governments that implement hotel taxes say that the money collected will be spent on tourism, but making everyone pay more for hotel rooms is not how to get people to visit your city.

Hotels don’t want their customers to pay this tax.

“Given the sky-rocketing costs of goods and services, escalating insurance and lease rates, and the inflation of almost every expense line of budgets, the imposition of an accommodation tax would be incredibly tone-deaf,” says Jim Bence, President and CEO of Hospitality Saskatchewan, the organization that represents many of the province’s hotels. 

And it’s not just hotels that could be taxed. The government survey also whether a hypothetical hotel tax should also include bed and breakfasts or campgrounds. It’s ludicrous to make one of the last affordable trips, camping, more expensive by imposing a tax on it.

The government will likely say that taxpayers need to calm down because it’s just studying the idea and that doesn’t mean the government is going to do anything. But even politicians don’t do something without a reason, if they are studying a new tax, there is a high risk that taxpayers will be getting a bill.

This idea needs to be stopped before it gets off the ground and into your wallet.

And if those living in one of Saskatchewan’s big cities think that bringing in a hotel tax will mean lower property taxes for you, think again. Winnipeg visitors a six per cent hotel tax and this year Winnipeg taxpayers are facing the largest property tax hike in 34 years.

Politicians will never be satisfied with the amount of money they take from taxpayers. Every new proposal like this is just a thinly veiled excuse to find new ways to empty the taxpayer piggy bank.

Municipal politicians don’t have any problem with raising your taxes. The city of Saskatoon is  property taxes by 4.96 per cent this year. The city of Regina  property taxes by 2.85 per cent last year.

The suggestion of a new hotel tax is also outrageous because some of these mayors are almost as bad as the feds for wasting taxpayers’ money.

The city of Saskatoon recently  $300,000 to brand its new Rapid Bus Transit System. Last year, the city  almost $100,000 to put decorative lights over some dumpsters in a back alley behind a bar to increase tourism.

The city of Regina  about $30,000 on its failed “Experience Regina” rebrand that was cancelled after unveiling slogans deemed inappropriate, such as “the city the rhymes with fun” and “show us your Regina.”

Instead of letting mayors raise your taxes and create new ones, the Saskatchewan government should be telling these cities to stop wasting money.

Saskatchewanians already have too many taxes to pay. The Saskatchewan government needs to say no to big-city mayors and reject all proposals for new hotel taxes.

Gage Haubrich is the Prairie Director for the Canadian Taxpayers Federation

The commentaries offered on Â鶹´«Ã½AV.ca are intended to provide thought-provoking material for our readers. The opinions expressed are those of the authors. Contributors' articles or letters do not necessarily reflect the opinion of any Â鶹´«Ã½AV.ca staff.

 

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