Yellowknife council passes budget with 6% property tax hike, along with new tax on hotel stays

Property taxes are going up, and tourists will also be paying new fees in Yellowknife after city council passed this year's budget and also approved a new accommodation tax on Monday.

Councillors unanimously voted in favour of the budget, which includes approximately $50 million in capital spending and a six per cent property tax increase.

The tax increase was originally proposed to be about eight per cent, but council whittled down some proposed spending plans and also factored in carbon-tax revenues to shave it down.

Some of the capital spending this year includes $16 million for the replacement of a sewage station, called Lift Station 1, $6 million for water and sewer infrastructure replacement, and $4 million for the new landfill and landfill expansion.

Some of the things trimmed from the draft budget include money for work to make a soccer field near Fritz Theil Memorial Park, and also a project to resurface tennis courts, which was deferred by a year. Some proposed new city staff positions were also cut, as was a proposed city-run dog pound.  

Councillors also voted unanimously on Monday in favour of the four-percent accommodation tax, something that's been talked about for nearly a decade.

The tax is a charge that will be placed on short-term accommodation operators such as hotels, motels, Airbnbs and VRBO listings in the city. Revenues will go from the city to a "destination marketing organization" which will be responsible for attracting more visitors to come to Yellowknife. The tax, under different names, exists in many other cities across the country.