Vancouver seeks 2.5% tax on short-term accommodation to raise revenue for hosting FIFA World Cup games

Booking a room in a Vancouver hotel could soon come with an additional 2.5 per cent tax as the city seeks to raise revenue to host games for the2026 FIFA World Cup.

The city asked the provincial government on Sept. 30 to apply a temporary Major Events Municipal and Regional District Tax (MRDT) on sales of short-term accommodation in the years leading up to the tournament to help fund extra staff, security and resourcing, and event-specific things like training sites and a "Fan Fest" area.

The MRDT amendment to the Provincial Sales Tax Act has been introduced in the B.C. Legislature and will now be carried to a second reading.

The City of Vancouver declined an interview with CBC, but in a statement, it said it will have to run at "above and beyond normal operating city service levels" for the World Cup.

"The City of Vancouver is working with the province on how the MRDT could be applied within the city, and further details will be made public as the process is determined," it said.

Vancouver and Toronto are among 16 host cities in North America for the tournament and will host10 of the event's 70 matches between them.

The specifics of the tax, such as when it will be implementedin Vancouver and for how long, have yet to be determined.

Communities can apply for a Major Events MRDTthrough Destination B.C. to get support and approval from the ministers of tourism and finance.

The Major Events MRDTis a limited-time tax of up to 2.5 per centon hotels and short-term accommodations. It can be appliedon top of anexisting MRDT already in place in more than 60 regions in the provincethat communities can use to provide funding for tourism marketing, programs and projects.

But adding taxes on top of taxes is a concerning step for some.

"You have to be careful about the layer of taxation that you start to layer on things," said Peter Milobar, B.C. Liberal MLA for KamloopsNorth Thompson, adding there are still plenty of questions to determine the criteria of which communities could apply.

B.C.Minister of Finance Selina Robinsonsays a temporary additional tax is not a new concept, citing the four per centResort Area Tax introduced in Whistler in 2007 to help the municipality foot the costs of the 2010 Winter Olympics.

"We see the potential benefits for other communities that are working to put B.C. on the international stage and bolster our economy," said Robinson.

The B.C. Hotel Association declined to comment.