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.
Visitors to Flin Flon could be digging deeper into their wallets early next year, if not sooner, after city council signed off on a hotel room tax. Council on Tuesday okayed the third and final motion for a five per cent municipal tax on all hotel stays, sending the matter to the provincial cabinet for final approval or rejection. Much of the revenue from the tax would be earmarked for tourism promotion and community beautification, but other expenditures remain possible. 'We're avoiding tying ourselves down to a specific (expenditure),' said Mayor George Fontaine. 'Every piece of income we have needs some amount of flexibility, so we're trying not to tie it down to (one thing).' Having not seen records kept by the two Flin Flon hotels and one motel, the city is uncertain as to how much revenue the tax will generate. Its best guess at the moment is $15,000 to $20,000 a year, a very modest amount when contrasted with an overall municipal budget that exceeds $11 million annually. Mayor Fontaine said attempting to project revenue from the tax is like trying to estimate income from overnight parking fees at the airport _ the city won't know how much money is involved until the tax is enacted. See 'Provin...' on pg. Continued from pg. Under provincial law, council lacks the authority on its own to implement a hotel tax, so the provincial NDP cabinet will now examine the proposal and reach a final, binding decision. Chief Administrative Officer Mark Kolt said the province has indicated approval could be granted by the end of the year, so the tax would likely take effect in early 2014 at the soonest. Council decided to approve a five per cent tax after flirting with the idea of a flat tax that would have cost visitors the same regardless of the cost of their hotel or motel room. Kolt said council felt that although a flat rate might make more sense for a hotel with higher rates and volumes, it may not make sense for other accommodation providers. Council approved first reading of the hotel tax in June, prompting a visit two weeks later from David Brooks, manager of the Victoria Inn. At the time Brooks, who runs Flin Flon's largest hotel, advocated a flat tax to ensure all accommodation providers 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 at least two councillors with his idea, but Tuesday's vote to proceed with a percentage-based tax passed unanimously. Coun. Colleen McKee was absent. Brooks also said he wanted 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.' 'It should be for marketing and advertising (to attract) tourism...(and) to try and bring business and conventions to the city,' he added. Also appearing before council in June was Haider Hussain, owner of the Oreland Motel. Before the new tax is brought in, Hussain urged council to undertake a cost-benefit analysis of the plan. Kolt replied that the price tag of a cost-benefit analysis may not make sense for the amount of revenue anticipated from the tax. 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.
