Court

Nelson Sergerie, LJI Journalist

PERCÉ – Discussions between the Town of Percé and business owners who wanted to meet with the town council last winter to find a solution for financing tourism infrastructure have still not begun.
A tourist tax was introduced on May 1, 2022, and the court ruled it illegal in June 2023 because it did not comply with the enabling powers prescribed by the Cities and Towns Act relating to municipal taxes.

The court concluded that the framework allowed a municipality to enter into an agreement to make a third party the collector of the tax, but that this role of collector could not be imposed, which exceeded the powers granted.

The Town of Percé had initiated proceedings in the Court of Appeals, but the council backed down in June 2024.

“We did not receive any feedback from groups of merchants, hoteliers, and restaurateurs who wanted to propose alternatives to the fee as it was proposed,” says Mayor Daniel Leboeuf.
“It’s unfortunate because we could have made progress before the tourist season. We’ll wait for them. It’s their industry, so they need to find a way to promote it and come up with the means to do so,” adds the mayor.

Mr. Leboeuf believes that this issue could become part of the public debate during the upcoming municipal election campaign this fall.

“It’s not in my program. I’d rather wait for their suggestions,” says the mayor, who will be seeking re-election in November.

“Percé devotes a significant portion of its budget to hospitality and infrastructure that must be maintained by a small population. It’s considerable. The industry has to do its part,” the mayor continues.
The tourist tax originally proposed by former mayor Cathy Poirier added $1 to purchases of goods and services over $20, with some exceptions, and $1 per night to help maintain tourist infrastructure. The town estimates that infrastructure costs $800,000 per year to maintain.

In 2022, $155,000 was collected during the tax’s only year of application.

Financial statements presented in August.

On June 30, the town filed its 2024 financial statements, meeting the legal deadline, during a special council session.

The accounting firm’s documents were submitted to the town over the last week of June.
“We received them at the last minute. That didn’t give us time to review the results. A surplus has been identified, and we want to understand where it came from before presenting it to the citizens,” explains Mr. Leboeuf.

When asked to comment on the size of the surplus, the mayor remained vague.

“It is higher than last year’s. It’s not necessarily because we charged too much in taxes. There are many factors involved. We will demonstrate this on August 5,” is all the mayor would say.
The town of Percé recorded a surplus of $551,669 for the 2023 fiscal year, out of a total budget of $8,042,843