(Image from Northern Bruce Peninsula website.)
Northern Bruce Peninsula council is looking to hear from residents on expanding the Municipal Accommodation Tax (MAT).
During a meeting on March 27, council received a report from Interim Treasurer Tony Houad recommending putting the proposed amendments to the MAT on its Let’s Talk NBP website, with a report set to come back afterwards.
In September 2021, council passed a by-law to impose the MAT effective Jan. 1, 2022.
Northern Bruce Peninsula’s MAT is set at a rate of four per cent and needs the municipality to provide half of the net MAT revenue to the Tobermory Chamber of Commerce, which is used to support local tourism. In 2021, the municipality also implemented a Short-Term Accommodation (STA) by-law to regulate and license short-term rental properties in the municipality.
The MAT currently applies to private STA residential dwellings rented to provide accommodations on a temporary basis of a period of less than 30 days.
On Jan. 9, 2023, council requested a report on the expansion of the MAT to include hotels, motels, hostels, cabins, cottages, and bed and breakfasts. The report says by expanding the MAT, it would expand the definition of accommodation to include these providers.
“The expansion of the MAT will result in additional revenue to the municipality and 50 per cent will be shared with the Tobermory Chamber of Commerce,” says the report.
In 2022, over $243,000 in MAT revenue was collected, and in February 2023, the chamber received a payment of over $121,000.
“Working with the Tobermory Chamber of Commerce, they have estimated that expanding the MAT program to motels, bed and breakfast and cottages would generate additional MAT remittances to the municipality in the range of $350,000 to $400,000,” adds the report.
Those looking to share their input on expanding the MAT can visit the municipal website here.