MP Mel Arnold is getting lots of calls from campground operators and RV companies over a change to the way the Canada Revenue Agency (CRA) classifies many campgrounds, removing them from the relatively low “small business” tax bracket, effectively tripling their taxes.
Castanet.net of Kelowna, British Columbia, reported that the North Okanagan-Shuswap MP told a group of Salmon Arm businesspeople a 300% increase in tax could be the last straw for an already shrinking industry.
CRA announced last year a campground’s principal purpose is to derive rental income instead of providing a service, so it should not be eligible for the small business tax rate.
CRA added that unless an operation has five or more full-time employees all year long, it’s too small to be a small business.
“Many operations employ dozens on a seasonal basis, but can’t operate 12 months of the year due to weather or municipal zoning restrictions,” said Arnold.
As the 2017 camping season gets under way, there is a lot of uncertainty in the industry.