KMSS Tax Alert – Rate Change for the BC Municipal and Regional District Tax

On January 4, 2024, the BC Ministry of Finance announced that the Municipal and Regional District Tax (“MRDT”) for the Invermere and Panorama area is being increased from 2% to 3%, effective February 1, 2024.

MRDT is an additional tax which has to be charged on most short-term rentals in BC.  The rate at which MRDT must be charged depends on the location of the property in BC.  There are some areas of BC where MRDT is not applicable.  When MRDT is applicable the rate is generally 2% or 3%.  The MRDT is in addition to the 8% PST which must be charged on most short-term rentals.

If your gross revenue from the property is less than $2,500 over 12 months, then you are not required to register to collect and remit PST and MRDT.  Also, if your BC accommodation is rented only through an online marketplace facilitator (such as Airbnb), then you are not required to register to collect and remit the PST and MRDT.

Below is a link to the MRDT location map on BC’s website.  To use this location map you need to type in the address or location of your property and it will tell you the rate at which MRDT applies in that specific area.

https://municipal-regional-district-tax-map.apps.gov.bc.ca/

If you have any questions related to the above, please contact your KMSS advisor.