South Bruce Peninsula council is set to receive an update on its municipal accommodation tax (MAT).
It’s a fee paid by visitors when they use short-term accommodation. Ontario gave municipalities the ability to implement the levy in 2017. South Bruce Peninsula began the tax program in January of 2022.
Half of that tax revenue must go towards promoting tourism. The other half can be used for other purposes as council sees fit.
Staff say in a report to be heard by council Tuesday, in 2022, total MAT revenue was $406,167. Commercial businesses contributed $230,565 and private short-term accommodation rentals contributed $175,601.
They say there are 37 commercial establishments including motels and campgrounds that are subject to the MAT program. All but one establishment that staff did not identify are remitting the 4 per cent tax to the Town.
According to the report, 347 Short-Term Rental Accommodation licenses were issued in 2022 to private establishments. They note only 170 of those remitted any form of MAT payment to the Town in 2022.
Staff say that’s slightly under half of those licensed establishments.
The report says in the first year of the program, the Town tried to operate the Short Term Rental Accommodations program and Municipal Accommodation Tax programs separately, but note, it became apparent the two programs needed to be more coordinated.
Staff say it had been suggested in the 2023 budget that an STRA Licensing and Compliance Officer be made into a full-time position to oversee compliance in both programs.
Council may consider how it would like to manage the programs going forward at its meeting Tuesday.
