Bowen Island Municipality is exploring the implementation of the Municipal and Regional District Tax (MRDT) to help fund tourism and affordable housing initiatives. The MRDT would apply to short-term accommodations on Bowen Island and help drive local economic development.
Read the staff report about MRDT.
What is the MRDT?
The Municipal and Regional District Tax (MRDT) is a tax applied to short-term accommodation rentals, such as hotels, motels, bed-and-breakfasts, vacation rentals (e.g., Airbnb or VRBO etc.), and other similar accommodations. The MRDT was introduced in 1987 by the BC Provincial government as a way to support local tourism marketing and initiatives.
The tax rate can vary and be up to 3%, depending on the community’s application and the approval from the provincial government.
Municipalities and regional districts must formally request the implementation of the MRDT through a bylaw, which needs to be passed by local council. This is the process Bowen Island Municipality has begun exploring.
Want to learn more? Check out Destination BC for information about the tax.
Want to learn where the MRDT is in place already, check out the interactive map.
The Road to MRDT – Project Timeline
The project to implement the MRDT will take place over several phases, with the goal of implementing the tax by January 1, 2027. The phases include:
We are currently in the plan preparation stage and public consultation about these plans will begin soon. Stay tuned for updates.
Why is this important for Bowen Island?
Bowen Island’s tourism plays an important role in the local economy, and we are committed to ensuring that growth in tourism supports our community’s well-being. Implementing the MRDT will enable Bowen to:
- Fund tourism marketing, programs, and projects that align with Bowen’s low-impact and sustainable tourism goals, and
- Direct funding to affordable housing initiatives to support a diverse and resilient community.
How MRDT Revenue can be Used
The Provincial Government sets out guidelines for how the MRDT revenue can be used. The MRDT revenue is specifically intended to support tourism-related initiatives and, in some cases, affordable housing projects. Bowen is proposing this option, to split the funds between tourism and affordable housing.
The MRDT can be allocated to three types of initiatives, and how the revenue gets allocated between these three is up to Bowen Island to determine prior to applying for the tax implementation. The three types are:
Tourism Marketing & Promotion
Funding initiatives that attract visitors to the community, such as advertising campaigns, digital marketing efforts, and promotional materials. Supporting tourism events that increase visitation, enhance the destination’s profile, and provide positive economic benefits.
Tourism Infrastructure & Programs
Developing and maintaining tourism-related amenities that enhance the visitor experience, such as visitor centers, interpretive signage, and tourism partnerships. Supporting sustainable tourism practices that minimize environmental impacts, such as eco-tourism initiatives or responsible visitation programs.
Affordable Housing Initiatives
Up to 50% of MRDT revenue may be allocated to affordable housing programs, specifically projects or partnerships that address the local housing affordability crisis. This can include support for affordable housing developments, non-profit housing organizations, or community-led housing projects.
The first phase of the MRDT consultation will include public engagement on how Bowen can use the MRDT revenue and prepare the financial plan and affordable housing plan that will direct the work.
Feedback
Have questions or want to stay updated? Contact the Planning department at planning@bimbc.ca or at
604-947-4255 ext. 6.
Check back here for ongoing updates as we move through each phase of the MRDT implementation process.