From the Town of Bracebridge:
Town of Bracebridge Council approved the implementation of a Municipal Accommodation Tax (MAT) in October 2023 and is now seeking public input to understand current needs, challenges and opportunities. Tourism stakeholders and members of the community are invited to review the project details and complete an online survey by Sunday, October 20 at engagebracebridge.ca/MAT.
Currently, Bracebridge is the only urban centre in Muskoka that does not levy the tax. A MAT could generate revenue to help support local tourism initiatives and strategic priorities
Following public consultation, staff will report back to Council with the results along with a proposed implementation plan.
Background
On May 17, 2017, the Province enacted Bill 127, Stronger, Healthier Ontario Act 2017, which provides single and lower-tier municipalities with the authority to levy a transient accommodation tax or MAT. Later that year, the Province enacted Ontario Regulation 435/17: Transient Accommodation Tax, which contains the provisions necessary to implement a MAT in accordance with s. 400.1 of the Municipal Act, 2001. The Regulation allows single and lower-tier municipalities the ability to implement a MAT through a by-law with a set tax rate. The Regulation also permits municipalities to enter into agreements with entities to collect a MAT, acting as agents for the municipality, and prescribes a revenue sharing disposition formula where some of the proceeds are transferred to an eligible local tourism organization.
Ontario Regulation 435/17 is permissive in scope, allowing municipalities to apply a MAT to various accommodation sectors, provided the accommodation is short-term in nature. The public consultation will help identify agency needs and interest in applying the MAT.
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