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Fair Taxation For Canadian Campgrounds

Fair taxation? That is a loaded question for Canadians. With a top marginal rate in Ontario of 53.5 percent, I might argue that Canadians generally experience excessive taxation.

The issue of fair taxation is of concern to the RV industry in this country. Representatives from the Recreation Vehicle Dealers Association of Canada (RVDA) host an annual awareness day with the federal government in Ottawa. This year, it was held on Thursday, April 26th.

The RVDA issued a news release captioned with this headline: Without action, campgrounds face 300% increase in taxes.

The industry has quite an impact on the Canadian economy estimated at $14.5 billion annually and growing. Canada has over 4,200 campgrounds.

From the news release:

But the continued growth success of the RV and camping industry is not assured. The promotion of the RV sector and proper infrastructure in our existing parks are crucial to the growth of the RVing and camping industries, as well as a prosperous Canadian tourism sector. The RVing industry contributes billions to the national economy, but campgrounds across Canada require infrastructural improvements in order to accommodate new camping and RV technologies.

That is an understatement. We have found it very difficult to find parks and sites that will accommodate our 40-foot rig. The picture above shows our coach at Milton Heights Campground. One of the better campgrounds in the Greater Toronto Area but a far cry from the best RV parks in the U.S.

I am starting to see signs of Canadian campgrounds making investments specifically to support larger Class A Motorhomes. Like Salish Seaside RV Haven in Victoria, British Columbia:

The park has been completely redesigned to be truly “Big Rig Friendly”. It comprises 36 pads of which all but a very few will accommodate the largest Class A Motorhomes. Most sites are waterfront with spectacular views around Victoria’s harbour.

We won’t see very many parks making these improvements with excessive taxation from the government:

“Our industry needs to be sure that we will be governed by a fair tax regime, including being eligible for the small business tax deduction,” said Robert Trask, Chairman of the CCRVC. “Without clarification from the government, our members face retroactive tax increases of as much as 300%. Having campgrounds pay a higher tax rate than billion-dollar corporations is dumbfounding.”

You can read the full release here.