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Policy
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Taxation and Regulation
Government plays a key role in ensuring that this important branch of the economy is nurtured through enabling legislation and regulation. As tourism quickly moves towards becoming B.C.'s leading industry, COTA believes that a Senior Minister should represent tourism in the provincial cabinet.
To achieve tourism policy development and implementation effectively, government must dedicate the appropriate human and fiscal resources in three main areas: marketing, operating environment, and land use. A single tourism policy and long-term strategy for the province must be adopted by the government under the jurisdiction of a senior minister responsible for tourism, and by all ministries of government. To carry this out, tourism needs a strong central secretariat, which ensures that tourism interests are being addressed in all other areas of government affecting tourism.
Furthermore, because land use is such an important area for tourism, the ministry responsible for land use needs to have in-house tourism land use expertise to ensure that visual quality, mapping, best practices and other tourism specific land issues are addressed. That local government legislation and public policy should contain appropriate checks and balances to ensure that both the needs of the resident and the needs of the business community are taken into account in allowing that municipality to grow in social and economic prosperity; That municipalities should refrain from aggressively targeting the non-resident for taxation, as the tourist is a significant source of income for the province. B.C. is a major destination operating in a highly competitive global marketplace. Excessive and inefficient regulations, taxes and hidden taxes such as fees and costly leases increase the cost of doing business in B.C. COTA will continue to press both federal and provincial governments to streamline regulations and impose a tax regime that is competitive with neighbouring jurisdictions. Property taxes can be a significant cost burden for tourism businesses, limiting the variety of business types in terms of viable product sectors in some regions, and the availability of products at different price points in general. Rapid increases in property taxes that result from sudden and significant property value increases also threaten the viability of a number of tourism businesses that have seasonal income streams and tight margins. COTA supports the development of mechanisms to ensure that assessed property values and taxation levels do not place undue burden on tourism businesses. These mechanisms can be focused on the valuation, classification and/or taxation of properties. Assessed values should also have some basis in the current use and value of properties, and mechanisms should be utilized to smooth rapid fluctuations in values. The assessment and taxation system should also be fair, consistent and equitable, limiting the overall burden on tourism operations. Local governments should also ensure that property taxes for Class 6 (Business and Other) properties are kept as low as possible relative to the Class 1 (Residential) class. Currently the potential investor who wants to develop or expand a tourism facility must go through a labyrinth of permits, procedures and taxes. COTA believes that an efficient and streamlined permitting system must be put into place to encourage continued growth in B.C.'s tourism industry. |
Business Services
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