Yellowknife’s tourist accommodation tax is due to roll out on April 1, the city reminded residents – and business operators – in a Wednesday news release.
A bylaw that comes into effect at the start of April will apply a four-percent tax to the price of tourist accommodation in the city.
“The funds collected will be used to enhance and grow the tourism sector in Yellowknife,” the city stated.
The tax relies on operators of licensed tourist accommodation collecting it and then sending it to the city quarterly. That means City Hall needs to ensure those operators have the right licence, know about the tax, and know how to collect it and submit it.
“All operators of licensed tourist accommodation within Yellowknife must comply with this new tax. This includes both larger commercial properties and short-term rental hosts,” the city stated.
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Short-term rentals – the likes of Airbnb – are also included. Anyone running an Airbnb in Yellowknife has to have a business licence and has to charge the tax.
Operators have to show the tax on any related invoice or receipt.
A new page on the city’s website will be set up to take the payments before the first deadline of July 30 for such payments to be submitted by operators.
Operators will be asked to pay the city by cash, cheque or debit. The penalty for failing to collect the tax or send it to the city on time is $250 to $500 for every conviction, the city states on a webpage about the tax.
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Not every stay needs to be taxed. Long stays of more than 30 days and some “specific government-related stays” (such as GNWT staff staying for work or people on medical travel) are exempt, the city stated in its news release.
Anyone with questions about the tax can email the city for clarification.
‘Just one of those costs’
A tourist accommodation tax has been an ambition of the City of Yellowknife for years.
In July 2018, the city revealed initial plans that suggested regulations could take effect in 2019 and Airbnb operators without licences could face fines of up to $1,000 a day.
While 2019 came and went, the city’s vision for the tax has gradually evolved until a bylaw was finalized late last year.
“We’re kind-of one of the last few remaining places that doesn’t have these types of taxes or levies,” city director of economic development and strategy Kerry Thistle told council in November.
“It’s just one of those costs that people seem to have become accustomed to paying.”
The city projects the levy will yield approximately $1.5 million a year. City Hall plans to use that revenue to develop Yellowknife’s tourism sector.
Once the levy is established, the city plans to create its own non-profit destination marketing organization. A draft structure of that destination marketing organization, revealing more about how it will operate and what it will do, is expected to come before council in the near future.
