March 3, 2014 Hon. Michael De Jong Minister of Finance Room 153

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March 3, 2014 Hon. Michael de Jong Minister of Finance Room 153, Parliament Buildings Victoria, BC V8V 1X4 Via Email Dear Minister de Jong: On behalf of the 18,000 businesses operating in the tourism industry, the Tourism Industry Association of BC urges government to fulfill its commitment to our rural resort owners to modernize the Tourism Accommodation (Assessment Relief) Act to reflect increased property values. It’s no secret that rural resort property taxes have increased so significantly over the past number of years that many of these operators have had to face closure. For those who have remained opened, the substantial tax burden has prevented them from being able to re-invest back in their business, impacting their ability to provide an exceptional experience for their guests. Our partner, the BC Lodging and Campgrounds Association has been communicating with government over the past decade about the declining viability of rural tourism accommodations. One major factor is the affect Class 6 property taxes is having on the survival of rural resorts, largely caused by increasing property assessment values and the shrink back of the general rural Class 6 business population in affected rural areas. At UBCM in 2012 a resolution was passed calling on the provincial government to address this issue and make changes. Following the passing of the resolution, the Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour responded: “The Province recognizes that high property assessments for rural tourism resorts have resulted in a tax burden for these businesses. In response to calls for Provincial Government assistance with this issue, the Ministry of Jobs, Tourism and Skills Training will work with the Ministry of Finance, the BC Assessment Authority and the Ministry of Community, Sport and Cultural Development to look at options to amend the Tourist Accommodation (Assessment Relief) Act with the UBCM’s recommendations, and to support this sector.” Page 2 Page 2 Hon. Michael de Jong This is one of the urgent priorities facing our industry and we ask for your agreement to follow through on a commitment that was made to our members. Sincerely, Christine Willow Chair Tourism Industry Association of BC cc: Hon. Coralee Oakes, Minister of Community, Sport and Cultural Development Hon. Shirley Bond, Minister of Jobs, Tourism and Skills Training and Minister responsible for Labour Hon. Naomi Yamamoto, Minister of State for Tourism and Small Business Donna Barnett, Parliamentary Secretary to the Minister of Forests, Lands and Natural Resource Joss Penny, Executive Director, British Columbia Lodging and Campgrounds Association Ian Robertson, Executive Director, Tourism Industry Association of BC .

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