New year, new tax for Thompson, MB

The Country Inn & Suites in Thompson, MB

THOMPSON, MB—A new tax has hotel managers here changing their rates along with their calendars.

The provincial government has approved a request from Thompson council for a five per cent tax on hotel stays that came into effect on Jan. 1.

Customers will now pay $5 in additional tax on the price of a $100 hotel room in the community of 13,000 people in northern Manitoba. The town’s original proposal called for a two per cent tax on room stays.

The amount was increased after the province said no to charging a two per cent tax on restaurant meals and bar liquor sales in Thompson. Had they been approved, the taxes would have added 30 cents to the cost of a $15.00 meal and 32 cents on a $16 bottle of wine.

Jim Baker, president and CEO of the Manitoba Hotel Association, spoke out against the taxes, as did Gord Wakeling, representing the Thompson Chamber of Commerce.
A five per cent tariff on room stays in Thompson matches a similar one put in place at hotels in Winnipeg earlier in 2008.

The city says the additional taxes would translate into an additional $616,000 annually to fund much needed infrastructure improvements to roads, wastewater, transit and public buildings. The city currently runs a $50-million infrastructure deficit.