Lake of Bays Council has paused implementing a Municipal Accommodation Tax (MAT) after feedback from the community.
During the Nov. 12 council meeting, a staff report was handed to council for discussion a responses from a survey which was launched on Sept. 20 with a closing date of Oct. 18.
According to staff, the MAT is intended to be a “flow-through tax”, which is collected by the provider and remitted to the Township and is “generally charged to the renter as an additional tax on the accommodation”.
If passed, it would also apply to all accommodation sold for a continuous period of less than 30 days in a hotel, motel, lodge, resort, inn, short-term rental (STR) or bed and breakfast.
A total of 179 survey responses were received.
Some of the responses in the survey said the tax would drive business away, as well as lower the income and increase the amount of expenses to track and report. Responses also touched on where it would be spent and how the tax would benefit residents after it was collected.
Now that implementation has been paused, staff will prepare a “definitive economic development strategic plan” to distribute these funds and create alternative tourism partnerships.
