The Town of The Blue Mountains is on track to have a Municipal Accommodation Tax starting in the new year.
On Sept. 10, The Blue Mountains council had a public meeting about the proposed Municipal Accommodation Tax (MAT). Interest in the issue was sparse with just a few members of the public attending the meeting.
A report from town staff recommends that a four per cent MAT be applied to all transient accommodations in the town starting on Jan. 6, 2025.
The MAT would apply to all short-term rentals, commercial rental units, hotels, motels and campgrounds. Hospitals, universities and colleges and provincial parks would be exempt. The tax would apply to only the charges for accommodation and not other ancillary services like room service, laundry or parking.
“What we’re proposing is consistent with other municipalities in Ontario,” said Tim Hendry, the town’s manager of communications and economic development.
Revenue from the tax would be split between the town and the Blue Mountain Village Association, which is the town’s official destination marketing organization.
The town has been studying the possibility of implementing a MAT for more than a year. In 2017, the province introduced new rules allowing municipalities to implement accommodation taxes. To date, more than 70 municipalities across Ontario have MATs in place.
As part of its research on the issue, the town has spent considerable time surveying residents, business owners and accommodation industry representatives about the impacts such a tax would have in the town.
Hendry said since January, the town has been working actively with industry representatives on the MAT project. He thanked the Blue Mountain Village Association and the Blue Mountain Short-Term Accommodation Owners Association for their participation.
“Being able to leverage the partnerships with those organizations has been key in making sure we hear and are working with local accommodation providers,” he said.
To implement a MAT, the town would pass a bylaw that details the start date for the tax, the rate and the rules for collection and remittance of the tax.
Stu Frith, a member of the Short Term Accommodation Owners Association, was the only member of the public to speak at the meeting.
“We do fully endorse the program,” he said.
Council did not make a decision about the proposed tax at the meeting. A follow-up staff report will come before council at a committee of the whole meeting in October. Should council approve moving forward with the project, the final decision would be made at the council meeting in October.
