Vernon Preparing for Increased Tax Revenue

May 2, 2016

VERNON – Getting a media release from a government proclaiming an increase in tax revenue isn’t something you see very often but that was the case recently for the City of Vernon as it celebrated a boost in tourism. The news release noted a jump in the tax revenue in 2015 through the region’s accommodation sector (hotel room tax). The total room tax collected in 2015 was close to $617,000. This is an increase of 15.1 per cent over 2014 and up 77.1 per cent since the first full year of collection back in 2011.

For five years in a row, Vernon has had the fastest growing room revenue compared to other major cities in the interior and only behind Vancouver provincially (17.2 per cent growth).

“2015 was another exceptional year for the accommodation sector in Vernon,” says Kevin Poole, Vernon’s manager of economic development and tourism. “We’re extremely pleased with the results and hope to see continued growth in the sector.”

The increase in tourism wasn’t the only thing the City of Vernon was celebrating recently. They were also recognized for their new tourism website and for their financial planning.

The City of Vernon’s newTourism Vernon site (www.vernontourism.com) received the Hermes Creative Gold Award. The Hermes Creative Awards is an international competition for creative professionals (hermesawards.com). The Tourism Vernon site launched in February and was developed with a focus on improved story-telling, platform capabilities, ease of navigation, functionality, and City branding (Activate Life).

“We’re proud to see this recognition of the City’s efforts to showcase Vernon as an attractive and vibrant tourism destination,” says Angeline Chew, tourism manager for the City. “This award is an indication that Tourism Vernon is moving in the right direction to grow.”

The City also received accolades for the preparation of its financial plan. For the sixth year in a row the Government Finance Officers Association of the United States and Canada (GFOA) announced that the Canadian Award for Financial Reporting has been awarded to City of Vernon for its annual financial report. The Canadian Award for Financial Reporting program was established to encourage municipal governments throughout Canada to publish high quality financial reports and to provide peer recognition and technical guidance for officials preparing these reports. Its attainment represents a significant accomplishment by a government and its management.

“One of the key responsibilities of our Council is ensuring fiscal responsibility and transparency, which are essential to delivering efficient, effective and proactive services to our taxpayers,” stated Mayor Akbal Mund in a media release at the time of the award.

● ● ●

In other news, the Greater Vernon Chamber and KPMG hosted a breakfast briefing on the federal budget and more than 60 business leaders attended.

“While there were a number of changes for business, it wasn’t significant in terms of the income tax rules,” says Rob Hulstein, tax senior manager at KPMG.

One item he noted was the decision to keep the small business tax rate at 10.5 per cent though the former Conservative government had called for to be reduced to 9 per cent. That decision is of concern to the Chamber because in order to grow our economy, business tax rates need to support business growth. Deferring this tax deduction indefinitely without a clear rationale or a new type of tax support for companies sends the wrong message to businesses.

From a local economic perspective, the Chamber was pleased to see additional investment in skills and training. There was also good news for the tourism sector with a $50 million investment for Destination Canada which will give a timely boost in efforts to promote Canada’s brand.

The budget also included $120 billion over 10 years for infrastructure with the primary focus being transit, sewer and water along with affordable housing. The infrastructure funding is welcome news but with that said there was a desire to see a quicker time frame for that investment so it could help stimulate the economy now.

● ● ●

The North Okanagan is still buzzing following the announcement that Lumby was selected 2016 Kraft Hockeyville. Lumby will be receiving significant funds ($100,000) to upgrade their hockey arena. The only question remaining is where the NHL preseason game will be held. It will either be in Lumby, Vernon, or perhaps in Kelowna. An announcement from the NHL is eagerly awaited.

● ● ●

Finally, we want to welcome the newest members of the Greater Vernon Chamber: Printech Printing Corp, CJV Carpet One, and Wholesale Grafix Distribution & Signage Ltd.

– Dan Rogers is the General Manager at the Greater Vernon Chamber of Commerce and can be reached at manager@vernonchamber.ca.

Share This