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Hotel tax closer, but format may change

The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.

The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.

Flin Flon is one step closer to a hotel tax, but it may be more evenly applied than first envisioned. At least two city councillors seem to favour replacing the proposed five per cent tax with a flat tax of $3 or more for every hotel stay. David Brooks, manager of the Victoria Inn, appeared before council Tuesday to advocate a flat tax. Brooks, who runs Flin Flon's largest hotel, said a flat tax would ensure all hotels and motels charge the same amount regardless of room price. Suggesting a $3 flat tax, he said this would also be easier for hotels to manage. Brooks appeared to win over councillors Tim Babcock and Bill Hanson. 'That appeals to more more than a percentage (tax),' said Coun. Hanson, who called Brooks' idea 'more fair.' But there was some indication the $3 suggested by Brooks may be too low for council. When Coun. Skip Martin asked Brooks whether he would support a flat tax of a higher amount, the hotel manager reiterated that 'the dollars per room makes more sense' than a percentage-based tax. Council soon approved second reading of a motion to enact a hotel tax, but they will need approval from the province before passing the third and final reading. If provincial approval is granted _ and there is no set date for a decision _ council can then decide exactly what form the tax will take. There are still questions as to how revenue from the tax would be spent. Council's motion sets aside the dollars for 'promotion and community enhancement' but does not specify what that entails. That had Brooks making more suggestions. See 'Pro...' on pg. Continued from pg. 'I just want to ensure that that tax is going to be used for the right purposes in that it should be to promote our community, our town,' he told council. 'It should be for marketing and advertising (to attract) tourism...(and) to try and bring business and conventions to the city.' Brooks said he would not favour the money paying for salaries or to plant flowers throughout the community. Coun. McKee said she likes Brooks' ideas on how to spend the revenue, but at this early stage she is not ready to rule out specific expenditures like flower-planting. 'I think that we have to be open-minded when it comes to these things,' she said. Coun. McKee said there needs to be a plan going forward on how to promote Flin Flon as a destination. Also appearing before council was Haider Hussain, owner of the Oreland Motel. Before the new tax is brought in, he urged council to undertake a cost-benefit analysis of the plan. Chief Administrative Officer Mark Kolt said the price tag of a cost-benefit analysis may not make sense for the amount of revenue anticipated from the tax. Council has no firm projections on revenue from the hotel tax. Coun. Babcock said The Pas generated $120,000 from its hotel tax last year, and while Flin Flon does not expect anywhere near that, he said it would be nice to get half that amount. While Brooks said hotel taxes are now the way of the world, he made a point of telling council that neither The Prospector Inn in Creighton nor Bakers Narrows Lodge would have to charge the tax. 'All I'm thinking is fairness, that's all,' he said. 'At the end of the day the tax is going to get passed on to the end user...'

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