The municipal and regional district tax (MRDT) is a tax of up to 2% charged on sales of taxable accommodation in participating municipalities and regional districts in B.C.
The tax can apply to the entire municipality or regional district, or to a specific area within the municipality or regional district. The MRDT assists municipalities, regional districts and other eligible entities in promoting tourism in their area and financing new tourist facilities or programs.
The MRDT applies to taxable accommodation sold in hotels, motels, resorts, hostels, bed & breakfasts and other establishments offering short term accommodation. The tax is administered by and sent in to the ministry under the Provincial Sales Tax Act and has its own tax return form. The ministry charges an administration fee to cover the cost of administering the tax, and provides the balance of the tax collected to the municipality, regional district or eligible entity on a monthly basis.
Providers of taxable accommodation located within a participating area are required to register with the ministry to collect and remit the MRDT.
Learn about your obligations as an accommodation provider.
A municipality, regional district or eligible entity in B.C. may apply to the ministry to participate in the collection of a MRDT of up to 2%.