At least two business owners in St. Stephen say they oppose a new tourism accommodation levy the council is deliberating on.
Joe Moffatt, the owner of the Oak Bay Campground, officially presented his concerns to the council last week.
His main concern was the added burden on his business operations and the impact it may have on customers who choose to spend extended periods of time at the campground.
“It’s not a lot, I understand,” he said.
Moffatt also pre-prints his invoice, saying he has about four years worth, but the levy would require him to reprint them to show customers the charge.
“I have to collect it, I have to house it, I have to account for it, I have to bank it, every quarter I have to bring it to you,” he said during the meeting. “It’s a nightmare.”
Moffatt questioned the profit the town would make off the amount of small B and B’s that operate locally and campgrounds.
“I wouldn’t even be considering it for that kind of money,” he said. “Hell, I’ll give you the $3,500 for you to leave us all alone.”
The municipality is only in the early stages of considering a tourism accommodation levy but is the only community without the presence of a larger-scale hotel.
Accommodation levy exists elsewhere
Accommodation levies exist in both Saint Andrews and St. George – the money collected from that is then disturbed out to improve tourism in the designated municipality.
St. George charges 3.5% on each person who stays at a hotel or accommodations. The same amount is levied in Saint Andrews.
Susan Thomas, who is the co-owner of Casa Breeze Bed and Breakfast, said she’s operated that business for about 13 years.
“I concur with what Joe Moffatt says in that I’m not particularly impressed with this tax, however, a big issue right now is timing,” she said. “The country to the south of us is rattling its sabers and threatening tariffs.”
She said those will have impacts on our economy and the Canadian dollar. Thomas said Canadians may choose to stay locally, but that with the strain it could mean their budgets are smaller.
“If we add another tax onto it, that doesn’t seem fair,” she said. “I would like to see this idea disappear,” she said.
St. Stephen Mayor Allan MacEachern said in an interview with The Courier that he appreciates the business owners who expressed their concerns about the levy, providing the council with more context it needs to make a final decision.
The municipality has been working diligently to bring a large hotel to the area.
“I know we have to start some time,” he said. “We got to keep up to what’s going on in all this. All the other municipalities are doing it everywhere. It’s not new.”
MacEachern said this fund will help the municipality really support tourism in a way it cannot now, given it uses other money currently to cover its tourism efforts.
“We can use those tax dollars for what they’re intended for and then use this levy just for that,” he said.
Any bylaw on a tourism accommodation levy would have to come before the council for discussion and three readings before being voted on.
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