Council plans to reinstate tax deferral program for Calgary hotels and motels

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A city committee will consider reinstating a tax deferral program intended to provide temporary relief to owners of Calgary hotels and motels hard hit by the pandemic.

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A notice of motion will be presented at Tuesday’s executive committee meeting to direct the city administration to develop a program similar to the one adopted in 2021, allowing hotel and motel owners who have not paid their 2022 property taxes to have half of the amount due. deferred to September 30, 2022, and the remaining taxes deferred to the end of 2023, without penalties.

“There’s not much this industry can do to pivot. If people don’t travel, people don’t stay in hotel rooms,” the adviser said. Sonya Sharp said over the phone Sunday.

“What we hope to do with this notice of motion is defer taxes for another year and hope that we can, you know, see this industry pick up a bit. As we enter the summer months, as Stampede arrives this summer, as we host the Petroleum Conference in 2023, we hope the industry can stabilize and thrive.

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The 2021 Property Tax Deferral Program for Hotels and Motels was passed by the previous council to defer property tax until the end of 2022 without penalties.

Com. André Chabot said many hotels are looking for additional flexibility to deal with their tax burden and avoid bankruptcy.

“Given that our economy is beginning to recover, the hospitality industry is hoping we are going to have a good summer and that will help contribute to their overall revenue year over year,” Chabot said.

Chabot said the densest area of ​​hotels in the city is in the northeast quadrant between Ward 10, which he represents, and the county. Raj Dhaliwal area 5.

According to the notice of motion, sponsored by councilors Sharp, Chabot, Dhaliwal, Dan McLean and Terry Wong, council would ask Mayor Jyoti Gondek to send a letter to the provincial government formally requesting more financial support for the hospitality industries, motel and hotel. .

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The notice of motion also includes a $300,000 grant to Tourism Calgary from the Financial Stability Reserve that would fund a promotional campaign for hotels and motels in the city.

Wong said hotel owners have expressed significant concerns about continued low incomes, so publicity is critical for the city.

“We need to let people across North America know that we are open and these are the deals we have for hotels and as a city,” Wong said.

“People need to recognize that people don’t book hotels on the spur of the moment to come next week – unless you’re in the business sector. When we talk about tourism, travel, these things are booked two or three months in advance at least.

Sharp said the city needs to attract people again as travel returns.

“It’s one thing to do a staycation, which hurts the travel industry, but what we really need to do is attract people to our city to stay at our hotels,” said Sharp.

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Twitter: @BabychStephanie

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