Revenue from new Airbnb tax to go into Kelowna housing fund | iNFOnews | Thompson-Okanagan's News Source

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Revenue from new Airbnb tax to go into Kelowna housing fund

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November 27, 2018 - 1:30 PM

KELOWNA - Affordable housing in Kelowna will get a boost from a new three per cent tax to be imposed on online accommodation rentals.

Tourism Kelowna, which already collects a three per cent tax on hotel rooms to fund tourism promotion, agreed to let proceeds from the tax on rentals from Airbnb and similar online accommodation booking sites to be used for affordable housing rather than add to its own coffers.

The new tax was levied by the province and came into effect Oct. 1.

The City of Kelowna had the option of letting the money go to Tourism Kelowna or put it into its affordable housing reserve fund that is currently funded by $200,000 per year in tax dollars.

James Moore, the city’s long range planning manager, told council yesterday, Nov. 26, there is no way to estimate how much revenue the new tax will generate.

In answer to a question from council, Moore noted that the provincial government will be responsible for collecting the tax.

How the money will be spent will be discussed further next year.

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