Tax Interpretation Manual: Designated Accommodation Area Tax Regulation

Section 1 – Definition

DAATR - SEC.1/ACT/Int.p

Interpretation (Issued: 2014/01)

Effective May 1, 2013, B.C. Reg. 93/2013 provides under DAATR section 1 that in the DAATR, "Act" means the Provincial Sales Tax Act.

Section 2 – Designated Accommodation Areas

DAATR - SEC.2/Int.p

Reference:

Act: Section 1 "designated accommodation area"

DAATR: Schedule 1; Schedule 2

Interpretation (Issued: 2014/01)

Effective November 1, 2013, B.C. Reg. 93/2013 as amended by OIC 332/2013 provides under DAATR section 2 that the areas set out in column 1 of the table in DAATR Schedule 1 and DAATR Schedule 2 are designated as a designated accommodation area for the purposes of the Act.

Subsection 2(1) provides that the area of a municipality set out in column 1 of the table in DAATR Schedule 1 is designated as a designated accommodation area for the purposes of the Act.

Subsection 2(2) provides that the part of the area of a regional district set out in column 1 of the table in DAATR Schedule 2 is designated as a designated accommodation area for the purposes of the Act.

Section 3 – Designated Recipients

DAATR - SEC.3/Int.p

Reference:

Act: Section 1 "designated accommodation area", "designated recipient", "eligible entity"; Section 123; Section 123.2; Section 123.3

DAATR: Schedule 1; Schedule 2

Interpretation (Issued: 2014/01)

Effective December 1, 2013, B.C. Reg. 93/2013 as amended by OIC 332/2013 and OIC 440/2013 provides under DAATR section 3 that for the purposes of subsection 123(1) [tax on accommodation in designated accommodation area], subsection 123.2(3) [tax if change in use of accommodation purchased for resale] and subsection 123.3(3) [tax if accommodation used for new purpose] of the Act, the municipality, regional district or eligible entity set out in column 2 of the table in DAATR Schedule 1 or DAATR Schedule 2 is designated as the designated recipient in relation to the designated accommodation area set out in column 1 of the table.

Section 3.1 - Prescribed Eligible Entities

DAATR - Sec.3.1/Int.p

References:

Act: Section 1 “designated accommodation area”, “eligible entity”

Interpretation (Issued: 2023/10)

Effective July 1, 2023, B.C. Reg. 113/2023 adds DAATR section 3.1, which provides that an eligible entity includes not-for-profit business associations that have a place of business in a designated accommodation area, and which actively engage in one or more initiatives respecting the availability of affordable housing in that designated accommodation area.

Section 4 – Rate Of Tax

DAATR - SEC.4/Int.p

Reference:

Act: Section 1 "accommodation", "designated accommodation area", "purchase price"; Section 123

DAATR: Section 2; Schedule 1; Schedule 2

Interpretation (Issued: 2014/01; Revised: 2016/01)

Effective September 1, 2015, B.C. Reg. 162/2015 repealed and replaced DAATR section 4 to allow for the different tax rates for designated accommodation areas in column 3 of DAATR Schedule 1 and DAATR Schedule 2. This amendment is consequential to the amendment to section 123 [tax on accommodation in designated accommodation area] of the Act that changed the maximum rate of municipal and regional district tax from 2% to 3%.

Effective May 1, 2013, B.C. Reg. 93/2013 provides under DAATR section 4 that for the purposes of subsection 123(1) of the Act, the rate of tax that is to apply to accommodation purchased in a designated accommodation area under DAATR section 2 [designated accommodation areas] is 2% of the purchase price of the accommodation.

Section 5 – Prescribed Purposes

DAATR - SEC.5/Int.p

References:

Act: Section 1 "designated recipient"; Section 125

DAATR: Section 3; Section 5.1; Schedule 3

Interpretation (Issued: 2014/01; Revised: 2023/10)

Effective October 1, 2018, B.C. Reg. 144/2018 amends DAATR subsection 5(1), to provide that, for the purposes of subsection 125(2) [payment to designated recipient] of the Act, affordable housing is also a prescribed purpose for which a designated recipient designated under DAATR section 3 [designated recipients] may spend the money paid to it under subsection 125(1) of the Act. The District of Saanich is governed by separate provisions found in DAATR section 5.1 [prescribed purposes – District of Saanich].

Effective April 29, 2016, B.C. Reg. 100/2016 adds DAATR subsection 5(1.1), which provides that tourism marketing, programs and projects prescribed by subsection (1) may include, but may not be limited to, sport hosting marketing, programs and projects.

Effective December 1, 2013, B.C. Reg. 93/2013 as amended by OIC 440/2013 provides under DAATR section 5 the prescribed purposes for which a designated recipient designated under DAATR section 3 may spend the money paid to the designated recipient under subsection 125(1).

Subsection 5(1) provides that for the purposes of subsection 125(2) [payment to designated recipient] of the Act, tourism marketing, programs and projects are the prescribed purposes for which a designated recipient designated under DAATR section 3 [designated recipients] may spend the money paid to the designated recipient under subsection 125(1) of the Act.

Subsection 5(2) provides that for the purposes of subsection 125(2) of the Act, DAATR Schedule 3 [Additional Prescribed Purposes] prescribes purposes for which a designated recipient designated under DAATR section 3 may spend the money paid to the designated recipient under subsection 125(1) of the Act and that are in addition to the purposes prescribed by DAATR subsection 5(1).

Section 5.1 – Prescribed Purposes – District Of Saanich

DAATR - SEC.5.1/Int.p

References:

Act: Section 125

DAATR: Section 5

Interpretation (Issued: 2014/01; Revised: 2023/10)

Effective January 1, 2022, B.C. Reg. 251/2021 amends DAATR section 5.1 to replace “Tourism Victoria” with “Destination Greater Victoria,” to reflect its new name.

Effective October 1, 2018, B.C. Reg. 144/2018 amends DAATR section 5.1, to provide that, for the purposes of subsection 125(2) [payment to designated recipient] of the Act, affordable housing is also a prescribed purpose for which the District of Saanich may spend the money paid to it under subsection 125(1) of the Act.

Effective December 1, 2013, OIC 440/2013 added DAATR section 5.1.

DAATR section 5.1 provides that despite DAATR section 5 [prescribed purposes], for the purposes of subsection 125(2) [payment to designated recipient] of the Act, destination marketing and tourism promotion, under the auspices of the Sales and Marketing Committee administered by Tourism Victoria, are the prescribed purposes for which The Corporation of the District of Saanich may spend the money paid to it under subsection 125(1) of the Act.

Section 6 – Repeals

DAATR - SEC.6/Int.p

Reference:

DAATR: Schedule 1; Schedule 2

Interpretation (Issued: 2014/01; Revised: 2016/01)

Effective September 1, 2015, B.C. Reg. 162/2015 amended DAATR section 6 by changing the reference from "column 3" to "column 4". This amendment is consequential to the amendments to DAATR Schedule 1 and DAATR Schedule 2 that added a new column to allow for different rates of municipal and regional district tax (up to a maximum of 3%) for different designated accommodation areas.

Effective November 1, 2013, B.C. Reg. 93/2013 as amended by OIC 332/2013 provides under DAATR section 6 that the table in DAATR Schedule 1 or DAATR Schedule 2 is amended by repealing an item in the table effective on the date set out in column 3 of the table for the item.

Schedule 1

DAATR - SCHEDULE 1/Int.p

Reference:

Act: Section 1 "designated accommodation area", "designated recipient"

DAATR: Section 2; Section 3; Section 6

Interpretation (Issued: 2014/01; Revised: 2016/01)

Effective September 1, 2015, B.C. Reg. 162/2015 amended DAATR Schedule 1 by adding a new column to allow for different rates of municipal and regional district tax (up to a maximum of 3%) for designated accommodation areas.

In addition, Schedule 1 was amended to reflect that the municipal and regional district tax rate for the City of Vancouver was increased from 2% to 3%.

Effective December 1, 2013, B.C. Reg. 93/2013 as amended by OIC 332/2013 and OIC 440/2013 provides a table under DAATR Schedule 1 that sets out the designated recipient and repeal date for each designated accommodation area.

Schedule 2

DAATR - SCHEDULE 2/Int.p

Reference:

Act: Section 1 "designated accommodation area", "designated recipient"

DAATR: Section 2; Section 3; Section 6

Interpretation (Issued: 2014/01; Revised: 2016/01)

Effective September 1, 2015, B.C. Reg. 162/2015 amended DAATR Schedule 2 by adding a new column to allow for different rates of municipal and regional district tax (up to a maximum of 3%) for designated accommodation areas.

Effective December 1, 2013, B.C. Reg. 93/2013 as amended by OIC 332/2013 and OIC 440/2013 provides a table under DAATR Schedule 2 that sets out the designated recipient and repeal date for each designated accommodation area.

Schedule 3 – Additional Prescribed Purposes

DAATR - SCHEDULE 3/Int.p

References:

Act: Section 1 “designated recipient”

DAATR: Section 5; Section 5.1

Interpretation (Issued: 2014/01; Revised: 2023/10)

Effective June 1, 2022, B.C. Reg. 115/2022 amends section 7 to provide that the District of Tofino may spend the money paid to it on the capital costs of constructing a wastewater treatment plant with a capacity to service peak tourist populations, as well as the development and construction of a visitor centre.

Effective January 1, 2022, B.C. Reg. 251/2021 amends section 2 to note that the Greater Victoria Visitors and Convention Bureau is also known as Destination Greater Victoria.

Effective December 1, 2018, B.C. Reg. 226/2018 adds section 9 to provide that the Resort Municipality of Whistler may spend the money paid to it for funding for convention centre marketing and improvements to the Whistler Conference Centre.

Effective June 1, 2017, B.C. Reg. 41/2017 adds section 8 to provide that the City of Kimberley may spend the money paid to it for convention centre marketing.

Effective June 1, 2017, B.C. Reg. 275/2016, adds section 7 to provide that the District of Tofino may spend the money paid to it for the development and construction of a visitor centre.

Effective January 1, 2017, B.C. Reg. 275/2016, amends section 2 to provide that the Greater Victoria Visitors and Convention Bureau, also known as Tourism Victoria, may spend the money paid to it for convention centre marketing and improvements to the David Foster Harbour Pathway.

Effective April 29, 2016, B.C. Reg. 100/2016 removes “sport hosting marketing, programs and projects” from how the City of Richmond may spend the money paid to it, consequential to amendments to section 5(1), where this provision now applies to all designated recipients (apart from the District of Saanich, per DAATR section 5.1). For the same reason, B.C. Reg. 100/2016 also repeals sections 5 and 6, related to the City of Nanaimo and the City of Vernon.

Effective April 1, 2015, B.C. Reg. 259/2014, adds section 5 to provide that the City of Nanaimo may spend the money paid to it for sport hosting marketing, programs and projects.

Effective February 13, 2015, B.C. Reg. 20/2015, adds section 6 to provide that the City of Vernon may spend the money paid to it for sport hosting marketing, programs and projects.

Effective December 1, 2013, OIC 440/2013 added DAATR Schedule 3.

DAATR Schedule 3 provides the following:

Richmond

Section 1 provides that the City of Richmond may spend the money paid to it for

(a) sport hosting marketing, programs and projects, and

(b) improvements to the Richmond Olympic Oval intended to enhance its attraction as a tourist destination.

Victoria

Section 2 provides that the City of Victoria may spend the money paid to it for convention centre marketing.

Greater Vancouver Convention and Visitors Bureau

Section 3 provides that the Greater Vancouver Convention and Visitors Bureau, also known as Tourism Vancouver, may spend the money paid to it for

(a) convention centre marketing, and

(b) the tourism industry’s contribution to the expansion of the Vancouver Convention and Exhibition Centre.

Sun Peaks Mountain Resort Association

Section 4 provides that the Sun Peaks Mountain Resort Association may spend the money paid to it for funding for the capital cost of constructing a public road from the municipality to Highway 1 (Trans-Canada).