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A Tale of Two (Tax Loving) Cities

Author: Mitch Gray 2000/01/20
Edmonton's Mayor Bill Smith and Calgary's Mayor Al Duerr are both very intelligent, very capable politicians. So why do they seem so happy to gouge taxpayers every chance they get

Their latest grab for cash involves the provincial Hotel Room Tax. Alberta first introduced the Hotel Room Tax in 1987, ostensibly to reduce the province's ever expanding deficit. The Tax, of course, did nothing to abate the deficit as the Getty administration pushed full steam ahead on a course to fiscal Gotterdammerung. When St. Ralph finally slew the deficit dragon, a provincial tax reform commission recommended phasing out the Hotel Tax over three years. Well guess what -- that never happened. Today the Tax brings in around $45 million a year.

Fortunately, the desire to kill the Tax has never subsided. The Alberta Hotel Association has been a vocal critic of the 5% levy on accommodation and a resolution was passed last fall at the Conservative Party convention calling for the elimination of the Tax. The possibility even exists for Treasurer Stockwell Day to take it off the books in this year's budget.

This prospect, of course, brings smiles to the faces of all overtaxed Albertans. But no one is more overjoyed than the mayors of Calgary and Edmonton. That's not because of their irrepressible concern for taxpayers - au contraire. It's because Messrs. Duerr and Smith want the Hotel Tax to fill city coffers instead of the provincial pot.

That's right -- Edmonton's and Calgary's top bananas want to take your tax cut away from you before it ever hits your wallet! They're calling on the Klein administration to give municipalities the authority to collect the hotel levy should the province back out. Smith and Duerr don't want to reduce your taxes; they merely want more for themselves.

And what are they going to do with this newfound loot Well, they're really not too sure. Maybe we could use it to "promote the city", says smiln' Bill. Maybe we could promote local venues like the zoo says smiln' Al.

Promote the city Promote the zoo Let me get this straight. These guys want to rob us of a tax break in order to funnel more money into the bowels of some bureaucracy to produce glossy brochures of West Edmonton Mall and the Calgary Stampede.

Wouldn't it make more sense to promote our cities as affordable holiday and business destinations Places where travelers know they'll get a good deal on accommodation Places where they're not going to be taxed into going home

Bill! Al! Wake up! A local hotel tax will not improve tourism or business activity. If anything, it will drive people away. There may be a plethora of governments in this country, but there is only one collective taxpayer. And we've had enough.

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