Saskatchewan must stop the cash grab and block the mayors’ hotel tax
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The last thing anyone in Saskatchewan needs is another tax. Yet, this is exactly what the provincial government is considering, as it recently conducted an online survey asking whether municipalities should be allowed to impose a new “accommodation” or hotel tax.
Under the Cities Act, municipalities can not impose a hotel tax. Changing this would require an amendment to the Act, which the government is now exploring. While Saskatoon has floated the idea of using a hotel tax to fund its proposed downtown arena and entertainment district, there’s no reason to believe other municipalities wouldn’t jump at the chance to levy the tax for their own projects.
A hotel tax means you and your family will be hit with a new tax every time you head to Saskatoon for a concert or a hockey tournament or drive to Regina for Agribition and stay overnight. The government survey also asked whether a hypothetical hotel tax should also include bed and breakfasts or campgrounds. It’s ludicrous to make one of the last affordable trips, camping, more expensive by imposing a tax on it.
 Cities should fix wasteful spending before adding new taxes: Canadian Taxpayers Federation. |
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Governments often justify hotel taxes by claiming the revenue will promote tourism, but taxing visitors is hardly how to encourage more people to visit your city. Jim Bence, President and CEO of Hospitality Saskatchewan, the organization that represents many of the province’s hotels, summed it up well: “Given the skyrocketing costs of goods and services, escalating insurance and lease rates, and the inflation of almost every expense line of budgets, the imposition of an accommodation tax would be incredibly tone-deaf.”
Even hotels don’t want their customers to pay this tax. It discourages travel, puts additional strain on their businesses, and penalizes customers. Saskatchewan families and out-of-town visitors shouldn’t have to foot the bill for poorly managed city projects.
If cities like Saskatoon and Regina need more money, perhaps they should start by cleaning up their own budgets. Saskatoon recently spent $300,000 to brand its Rapid Bus Transit System and $100,000 installing decorative lights over dumpsters in a back alley to “boost tourism.” Regina wasted $30,000 on its failed “Experience Regina” rebrand, with slogans so inappropriate – such as “the city that rhymes with fun” and “show us your Regina” – they had to scrap the campaign entirely. These examples show that mayors aren’t exactly careful stewards of taxpayer money. Giving them the ability to impose a new tax will only embolden more wasteful spending.
The government will likely tell taxpayers to calm down because it is just studying the issue and taking no immediate action. However, politicians rarely study a new tax without an underlying intent to implement it. If the government is considering it, taxpayers will likely eventually see this idea materialize as a new expense.
This idea needs to be stopped before it gets off the ground and into your wallet.
Some city officials might argue that a hotel tax could ease property tax hikes, but don’t count on it. Just look at Winnipeg: the city charges a six per cent hotel tax, yet Winnipeg taxpayers are facing the largest property tax hike in 34 years this year.
Saskatchewanians already face enough taxes. Instead of letting municipalities pile on more, the provincial government should tell cities to manage their budgets responsibly. Hiking property taxes by 4.96 per cent, as Saskatoon is doing this year, or 2.85 per cent, as Regina did last year, while proposing new taxes, is a slap in the face to taxpayers.
Politicians will never be satisfied with how much money they take from taxpayers. Every new proposal, like a hotel tax, is just a thinly veiled excuse to find new ways to empty the taxpayer piggy bank.
A hotel tax will harm families, visitors, and businesses while encouraging more wasteful spending. The provincial government must reject this idea before it gains traction. Taxpayers deserve accountability from their local leaders, not another raid on their wallets.
Saskatchewanians, it’s time to act. Reach out to your MLAs and demand they say no to a hotel tax. Together, we can stop this idea in its tracks.
Gage Haubrich is the Prairie Director for the Canadian Taxpayers Federation.
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