Northern Bruce Peninsula Council (Image from Northern Bruce Peninsula YouTube)
Northern Bruce Peninsula is looking for more information before possibly expanding the Municipal Accommodation Tax (MAT).
Council approved requesting a report come back on expanding the MAT during a meeting on Feb. 26 after reviewing comments from residents. People were given a 120-day period to share their thoughts on the potential MAT expansion through the municipality’s engagement website LetsTalk MNBP.
The responses included questions and concerns ranging from how the revenue from the MAT will be spent, with others saying the expansion should apply for all motels, hotels and other short-term accommodations (STA).
Council voiced their support for expanding the MAT to include hotels, motels, hostels, boarding houses, lodges, cabins, inn and resorts, lodging or room houses, bed and breakfasts, and other establishments, but excluded campgrounds and marinas from the MAT.
Coun. Laurie Golden says if council moves ahead with the expansion, they should give people a year to be ready for what the tax covers before it possibly comes into effect at the start of 2025.
“This year we will give people the opportunity to get up to speed, get used to it, get everything they need to get their ducks lined up,” says Golden.
In May, Northern Bruce Peninsula began moving to expand the MAT, which currently only covers short-term rentals like AirBNBs.
Staff recommended it further include hotels, motels, bed and breakfasts and other STAs.
The MAT is set at a rate of four per cent and currently applies to private STA residential dwellings rented to provide accommodations on a temporary basis of a period of less than 30 days.
The municipality is required to provide half of the net MAT revenue to the Tobermory Chamber of Commerce, which is used to support local tourism.
Council requested in the report coming back to include the total amount collected from the MAT after Golden suggest it be reduced to two per cent.
“As a municipality, we either have to start seeing where we can raise funds or we have to raise taxes, which we already did this year,” says Golden.
In January, council heard objections to the potential expansion from past president of the Tobermory Chamber of Commerce and residents.
Council will be returning to this at its next meeting on March 11.