(Image from Northern Bruce Peninsula website.)
Northern Bruce Peninsula is moving towards an expansion of its municipal accommodation tax.
Currently, only short-term rentals like AirBNBs are covered.
But staff are recommending the four per cent fee also be applied to hotels, motels, bed and breakfasts and other short-term accommodations.
Council received a report at its meeting on Monday from Interim Treasurer Tony Houad on expanding the MAT and to sign the by-law on June 12.
The MAT is set at a rate of four per cent and currently applies to private short-term accommodation (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.
Earlier this year, council requested a report from staff on the expansion of the MAT under the current program, which would also include comments from residents, which would expand the definition of accommodation to include hotels, motels, hostels, cabins, cottages, and bed and breakfasts.
Based on the comments received, staff are recommending the definition of STA be broadened to ensure all STAs, providing 30 days or less, would be charged under the MAT.
In 2022, over $243,000 in MAT revenue was collected, and in February 2023, the chamber received a payment of over $121,000.
By expanding the MAT, the municipality would generate an additional $350,000 to $400,000.
Following the signing of the by-law, the effective date of the expanded MAT would be July 1.