Thank you, Mr. Speaker.
Energy Upgrades and Retrofits through Local Improvement Bylaws
Committee did not receive a great deal of substantive input on this aspect of the Bill. In Committee's discussion with representatives from the Town of Inuvik, Mayor McDonald noted that it is a good idea in principle but, again, more of a Yellowknife issue given that smaller municipalities are less likely to have the resources to allow them to finance private improvements.
In her letter to the committee, Fort Smith Mayor Ms. Lynn Napier-Buckley said that the "proposed change allowing the local improvement mechanism to be used for energy efficiency upgrades is...unnecessary and detrimental," pointing out that Municipal and Community Affairs had already advised that municipalities can apply the local improvement charge to individuals and further noting that municipalities are not set up as banks or lending institutions.
What We Did
In considering the input received, committee gave a great deal of consideration to the fact that the proposed amendments to the CTV Act do not compel or obligate a tax-based municipality to exercise either of the new authorities. Instead, Bill 18 provides for the new authorities, in law, for any municipality that wishes to exercise either, or both. Just as the Government of the Northwest Territories has argued for greater autonomy from the federal government, committee members believe it is important that municipal governments be given appropriate latitude to respond to local circumstances and needs. For this reason, the committee is generally supportive of Bill 18.
Tourist Accommodation Tax
Tax Rate
Committee took note of the suggestions from the Yellowknife Chamber of Commerce and the Explorer Hotel that the proposed rate for the tourist accommodation tax be reduced in the bill from 4 percent to 3 percent. Clause 2 of Bill 18 proposes to create a provision in the CTV Act [Section 70.1(4)] which sets the maximum rate of the tourist accommodation tax at 4 percent of the daily accommodation rate.
Committee feels that this appropriately allows municipalities the discretion to set a rate lower than 4 percent if that is the wish of the municipality. Committee finds that this is in line with the hotel tax rate in other Canadian jurisdictions, noting that travellers to the NWT do not pay a provincial sales tax in addition to the accommodation tax. Committee encourages the City of Yellowknife to give consideration to the wishes of the Chamber of Commerce and Yellowknife hoteliers in setting a final accommodation tax rate.
Mr. Speaker, I would like to now pass the floor to my colleague, Mr. McNeely, the Member for Sahtu. Mahsi.