January 29, 1999
(Executive Council)

Premier makes clear province has no objection to exemption for B&Bs

Premier Brian Tobin confirmed today that the provincial government has no objection to the City of St. John's exempting bed and breakfast operators from the accommodation tax that will support, in part, construction of the St. John's Civic Centre.

"Whether or not the City of St. John's chooses to exempt bed and breakfast operators from the accommodation tax is for city council to decide," said the premier. "This can be done by amending the memorandum of understanding on the Civic Centre signed on October 23."

The legislation approved by the House of Assembly to authorize the accommodation tax implements the October 23 memorandum of understanding among the province, the city and the Avalon Convention and Visitor's Bureau or "amendments to that memorandum". With an amendment to the memorandum, the city will have the necessary discretion to exempt bed and breakfast operators. If an amendment to the memorandum were to prove impossible, and the city requested it, an amendment to the legislation could be made to expressly give it the power to exempt bed and breakfast operators.

Media contact: Heidi Bonnell, (709) 729-3570.

1999 01 29                                             3:50 p.m.