Mr. Chair, clause 2 of Bill 18 adds a new section to the Cities, Towns and Villages Act that allows tax-based municipalities to levy a tax on tourism accommodations. Under clause 2, the new section 70.1(5) provides a list of exemptions, that is, a list of types of accommodations or classes for the persons and organizations who may be exempt from paying the tax. These include accommodations rented for more than 30 days, accommodations costing less than $20 per night, the Government of the Northwest Territories and its public boards and agencies, a person and his or her family being accommodated on medical travel, a person paying out of pocket for a stay at the hospital or health care facilities, or any other exemptions provided that are in the regulations.
During review, the standing committee heard from the majority of the public that the list of exclusions is too long. The City of Yellowknife, who is the primary proponent of the bill, said the City would prefer that Bill 18 not contain such an exhaustive list of exclusions. The Explorer Hotel expressed concern about the burden that the exclusions would place on front-line staff to determine eligibility for exclusions. This is important because the bill contemplates the designation of a hotel operator as a tax agent for the municipality. The Explorer Hotel said it will be difficult for a front desk worker or reservation agent to challenge a government official as to the purpose of their trip.
Mr. Chair, during the clause-by-clause review of the bill, committee moved a motion to amend this provision by deleting the list of exclusions and replacing it with a single exclusion for all NWT residents. Unfortunately, the Minister did not concur, and the motion was defeated. I bring forward this motion again, and I support it for two reasons.
First, it simplifies administration of the tax for hotel operators. Anyone who pays for accommodations and can show proof of NWT residence using any government-issued ID card would be exempt.
Secondly, this is meant to be a tax on tourists travelling to the Northwest Territories. The NWT is already an expensive place to live and work, and I do not feel that it is fair to tax NWT residents in this way to support a municipal tourism objective. I am worried about the impact of adding this additional cost on local governments travelling to Yellowknife for meetings and training. These local governments are already underfunded annually by the GNWT to the tune of more than $30 million per year. I am also especially worried about the potential negative impact of this levy on amateur sport teams, who scrimp and fundraise for every dollar that they can get in order to travel to sporting events.
For these reasons, I support this motion today and ask for the support of my colleagues in the south. Thank you, Mr. Chair.