Municipal and Regional District Tax (MRDT) Stakeholder Information Session Scheduled for November 13

Thursday, November 7, 2024 – A stakeholder information session about the Municipal and Regional District Tax (MRDT) program that the District of Sooke is considering implementing will be held on Wednesday, November 13, 2024 from 2:00 p.m. to 4:00 p.m. and the Royal Canadian Legion. To help us prepare, please register in advance by clicking here before November 11, 2024.

The program is a provincial tourism / visitor economy user levy initiative that was initiated and established by the Province of BC in 1987.  Currently, 97% of BC communities collect the MRDT.  The collection of this levy from fixed roof accommodation businesses with 4 plus rooms has the potential to generate a sustainable revenue stream that can be used to offset the investment and costs for tourism projects, visitor economy market development, and additionally, it now can be used towards the development of affordable and attainable housing initiatives within the community of Sooke.

In addition to this information session, key next steps for the application process include:

  • Formation of a local tourism industry steering committee
  • Extensive interest-based consultation within the community of Sooke
  • Development of a five-year Strategic Business Plan that will guide how the collected revenue will strengthen and grow Sooke’s Tourism Economy

The District of Sooke aims to submit the final application package to the Province by February 2025, following collaborative community engagement and interest-holder consultation.  The application package will include:

  • District of Sooke’s new 2023 Juan de Fuca Tourism Corridor Strategy.
  • Confirmation of the District’s Destination Marketing Organization (DMO) status with the Destination Marketing Organization of BC; and
  • Confirmation of a 50%+1 local support from Sooke’s eligible accommodation providers

To be added to the project contact list, please do so here: DISTRICT OF SOOKE MRDT PROJECT CONTACT LIST FORM.

For more information on MRDT and the District’s application, please contact:
Gail Scott, Community Economic Developer Officer
Tel: 250-642-1634
e: gscott@sooke.ca


Frequently Asked Questions

What is the MRDT program, and why is the District of Sooke applying?
The MRDT program is a provincial initiative that allows municipalities to apply a tax (accommodation user fee where a business is operating 4 or more rooms) on short-term accommodations, with the collected funds directed toward local tourism development and affordable housing. By joining the program, Sooke can create a sustainable revenue stream that supports our tourism sector while exploring new avenues to address housing needs. This model of financial diversification helps alleviate reliance on traditional funding sources, allowing the District to reinvest in key community priorities without increasing residential tax rates to do so.

How does the MRDT support economic growth in Sooke?
The MRDT helps fund marketing and development initiatives aimed at promoting Sooke as a tourism destination (while a portion of revenues can also be used to support affordable housing initiatives). By attracting more visitors, the District can stimulate local businesses and create opportunities for job growth. Tourism-driven revenue also circulates through our local economy, providing indirect benefits to various sectors and fostering a more resilient economic foundation.

Why is diversifying revenue important for the District?
As Sooke grows, the need for diversified revenue sources becomes essential to maintaining service levels, infrastructure, and economic development without increasing the tax burden on residents. The MRDT program offers a targeted, sector-specific revenue source that can fund tourism and housing initiatives, helping Sooke build a stronger, more diverse economic base while supporting long-term community sustainability.