New Accommodation Tax now collected in many northern municipalities: What you should know
The Sault, Sudbury, Thunder Bay and other cities looking for the new MAT to boost tourism in 2019
Municipal Accommodation Tax is applied to paid accommodations occupied for a duration of less than thirty consecutive days. This includes stays at hotels, motels, lodges, resorts, bed and breakfasts or any place an accommodation is rented for a fee (with some exceptions).
The MAT applies only to the accommodation charge and not associated charges, such as meals or room incidentals, so long as these amounts are itemized separately on the bill. No portion of this tax is owed by municipality residents unless they pay for an accommodation that is subject to the region’s Municipal Accommodation Tax.
Municipalities who participate are required to share a portion of the MAT revenue to an eligible tourism entity to support sustainable funding of local tourism initiatives.
For example, Sault Ste. Marie’s MAT is set at 4 per cent with 60 per cent of revenue after administration fees directed to a non-profit entity. The remaining 40 per cent of revenue is retained by the City for tourism promotion and developments.
Northerners have a lot riding on their tourism industry. One out of every four businesses in the north is tourism-related with 40 per cent of the workforce connected to tourism. And for the region’s youth, the tourism industry is the largest employer of young workers.
Northern Ontario welcomes 8.2 million visitors who spend over $1.5 billion annually and look to grow from here.
As the MAT is in its infancy, it’s too early to conclude how great its impact will be on municipalities, businesses, and tourism. However, what is clear, is the tourism industry is essential for the north to thrive and finding ways to support new initiatives is key to the success of the economy.– Tbnewswatch
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Not sure how increasing the cost of staying here will increase tourism. If that is true, then add a municipal tax on tax bars and restaurants as well. THAT should REALLY boost tourism.
Every dollar paid into this tax is a dollar that will not be spent in local shops, restaurants and cafes. Believe it or not, tourists have budgets. They only have sooo much money to spend.
We are going to tax ourselves out of business. Increased taxes and fewer services. Soon we will be paying high taxes and receive zero services. That is the direction our city is headed.
Bring on the rain tax.
previous related posts here