Additional Major Events Municipal and Regional District Tax (MRDT) consultation
A new Major Events Municipal and Regional District Tax (MRDT) of up to 2.5% on short-term accommodation sales may be available to communities.
The purpose of this tax is to help cover the cost of planning, staging and hosting eligible major international tourism events that generate significant international visitation and help bolster provincial tourism and the economy. The Major Events MRDT program applies to:
- Regional districts, and
- Eligible entities (non-profit organizations actively engaged in tourism marketing, programs or projects, or affordable housing initiatives)
Under the Provincial Sales Tax Act, there are certain requirements to be eligible for the Major Events MRDT, namely:
- The Minister of Finance is satisfied that there is to be a major international tourism event intended to generate significant international visitation and help bolster provincial tourism and the economy in or near the proposed designated major event accommodation area; and
- The Minister charged with the administration of the Tourism Act has, on behalf of the government, entered into an agreement with the municipality, regional district or eligible entity respecting the tax.
The province is currently developing the program requirements and application process that will be applicable to the new Major Events MRDT program, namely:
- Defining what is an eligible major international tourism event
- How the revenues can be spent, and
- Reporting requirements
The program requirements and application process will be developed by the Ministry of Finance, Ministry of Tourism, Arts, Culture and Sport, and Destination BC in consultation with local governments and the tourism and accommodation industry.
We are inviting your comments on certain draft principles that will guide the development of the Major Events MRDT program requirements and application process. Interested parties should review this consultation paper which has been designed to guide the consultation and feedback process. The province will consider your comments for incorporation into the Major Events MRDT program requirements and application process.
Note: this consultation on the Major Events MRDT is not related to the Tourism Renewal Initiative process being led by the Ministry of Tourism, Arts, Culture and Sport. Additionally, this consultation is not related to the broader existing MRDT program – it is strictly related to development of the new Major Events MRDT program requirements and application process, consistent with legislative amendments that were enacted in the Fall 2022.
The deadline to provide feedback is December 29, 2023. Staff from the Ministry of Finance and the Ministry of Tourism, Arts, Culture and Sport will also be available during the consultation period for online discussions with interested parties. To set up an online discussion, please contact us by email at PST.Consultations@gov.bc.ca.
Please submit your feedback on the consultation paper to PST.Consultations@gov.bc.ca or by mail to:
Tax Policy Branch
Ministry of Finance
PO Box 9547 Stn Prov Govt
Victoria BC V8W 9C5
Public nature of consultation process
The Ministry of Finance may share comments it receives as part of the consultation process with other branches and agencies of the provincial government, namely, the Ministry of Tourism, Arts, Culture and Sport and Destination BC. Freedom of information legislation may require that responses be made available to members of the public who request access. Any personal details you share will be kept safe as required under section 26(c) of the Freedom of information and Protection of Privacy Act.