New Levy Should Collect Over $1 Million Of Hotelier’s Cash
Moose Jaw is set to launch a new tax levy to help finance tourism operations in the city. Additionally it will establish a unified tourism entity.
During Monday afternoon’s Executive Committee meeting the committee discussed a potential one percent (or higher) of taxable assessment levy to all properties providing temporary lodging with 10 or more rentable bedrooms.
The 10 rentable bedrooms portrayed in the report was higher than three in the report released publicly on Friday.
The list of affected properties could potentially include hotels, motels, inns, bed and breakfasts amongst others.
Information Meeting
Councillor Heather Eby asked about an information meeting held on November 7th.
City manager Maryse Carmichael said the meeting had a small turnout.
The small group was not on the City’s side. MJ Independent has learned that the approximately 10 meeting attendees were 100 percent against the proposal.
Carmichael spoke about one hotel was not allowed to charge a tourism fee on rooms unless the funds go to an actual event and tourism group.
Something the City’s proposed committee for Moose Jaw is not.
Carmichael also answered a question regarding charging a levy on restaurants. She said that had been discussed, but refused because local people don’t use the tourism resources and would be charged to pay for them.
Another issue not discussed was that with a new levy the city was now off the hook when it came to funding Tourism Moose Jaw, the Downtown Moose Jaw Association as well as receiving over $35,000 to administer the funding and project. A major win for city coffers.
Something Councillor Chris Warren asked about whether or not the levy would result in savings to the city when it came tax time.
Carmichael said Administration was looking at a virtual meeting to get more voices on the issue.
“We are still looking for feedback.”
More Money Please Sir
A number of councillors spoke up, asking for consideration be made to raise the levy higher than the proposed one percent.
Those councillors wanted 1.5 percent or tossed around an idea of an even higher levy.
Councillors Eby and Patrick Boyle spoke the loudest in raising the levy higher than the one percent proposed by Administratiokn.
The estimated take from a one percent levy is $693,000.
“I’d rather see it at 1.5 percent now than have it come back on a year saying (we need to raise it),” Councillor Eby said.
“I’d rather have a little bit more coming out of the gate (than come back later for more),” she said.
Councillor Boyle - who represents the City on the Tourism Moose Jaw and Downtown Moose Jaw Association boards - went further stating he would like the levy to raise about $1 million.
“I think 1.5 percent is OK it takes in (over) $1 million,” he said.
Councillor Dawn Luhning also spoken in favour of raising the levy higher. Something she later backpedaled somewhat on once she found out how much tax it would bring from the hotels.
“This is something Moose Jaw is not the only one in the country doing,” Councillor Luhning said.
Levy’s Design
The levy is modelled under what is happening in Prince Albert and that city’s one percent levy.
The levy is designed to:
Establish a sustainable, locally guided funding model to support tourism marketing and event attraction.
Realign Moose Jaw’s tourism delivery structure to enhance coordination, accountability, and strategic impact across the community.
There may well be side affects with sources telling MJ Independent that the creation of the levy will usher in the demise of Visit Moose Jaw.
Visit Moose Jaw is an industry driven vehicle that collects a levy on members and then use it to sponsor events. The group has sponsored dozens of events, both big and small over the years in the city.
The Visit Moose Jaw money was not made accessible to Tourism Moose Jaw something at least one former executive director of that group criticized at Counvil.
Additionally under the plan the Temple Gardens Events Centre - a member of Visit Moose Jaw - would not contribute to the plan through a taxable assessment levy. Presently it contributes through Visit Moose Jaw. The Temple Gardens Event Centre is a City owned property.
The new group proposed by the City will take over sponsorship, destination marketing and downtown promotion.
Under proposal, there would be changes in funding.
Tourism Moose Jaw would no longer receive an annual grant - in 2025 the grant was $103,628.
The Downtown Moose Jaw Association would also no longer receive an annual grant - in 2026 the grant was $73,290.
The report pointed out there are three entities - Tourism Moose Jaw, Visit Moose Jaw and the Downtown Moose Jaw Association (a business group)- and how the splintered nature of three groups is often ineffective and does not capture the full potential of their efforts.
A new single group was seen by the report as:
stopping duplication of efforts
Improving accountability
Provide greater marketing resources
Enhance capacity to support large scale events.
Voting
Council took two votes on the issue.
The first vote was an amendment by Councillor Boyle which would move the levy from one percent to 1.5 percent.
The motion passed 5 to 2 with Mayor James Murdock and Councillor Warren opposed.
I vote on amended motion passed unanimously.
The decision by Executive Committee must be finalized at the next meeting of Moose Jaw City Council.