Fernie City Council is considering increasing short-term rental (STR) licensing fees to a level similar to that of other local governments.
Council is proposing a fee of $500 per year for STRs in a primary residence or $700 per year for a non-primary residence, such as a condo or hotel.
“We see a lot of STRs at the ski hill, of course, and in the surrounding community, so it feels like aligning closer to the Regional District of East Kootenay is a clear outcome here,” said Mayor Nic Milligan.
Council Member Harsh Ramadass says high tourism traffic increases stress on Fernie’s infrastructure and increased fees could offset heightened repair costs.
“If you have additional suites to rent out, there is a real, tangible effect on our infrastructure,” said Ramadass.
“That is the angle I want to explore more of: how much can we recoup this hidden cost on our infrastructure.”
Fernie, a major tourist destination, boasts 236 registered STR business licenses with 148 condo/hotel units, and 88 primary residence units.
Currently, Fernie has a flat fee of $100 per year for STR businesses, which brings in $23,600 into the City’s coffers each year.
According to City staff, increasing the annual fees to $500 and $700 could bring in well over $100,000 per year.
Council Member Ted Shoesmith says this fee increase could offset future tax increases for residents.
“We are debating vigorously over every tenth of a per cent of tax we’re going to levy on residents. If we can find even half of a tenth of a per cent that we can save, it’s worth it,” said Shoesmith.
“It’s not a number derived from math and business, it’s a number derived from the fact that I’m certain that almost nobody will lose their minds over the difference, but it will show up as more potholes patched or extra money in our reserves.”
The decision made Tuesday evening directs City staff to prepare a draft bylaw amendment, which will come back for first reading and more discussion at a future council meeting.
Be the first to know! Don’t miss out on breaking news and daily updates in your area. Sign up to MyEastKootenayNow News Alerts.
