The Town of The Blue Mountains will have a municipal accommodation tax (MAT) in place early next year.
In a unanimous vote, council approved the new tax on hotel rooms and short-term accommodations at its committee of the whole meeting on Oct. 7.
A bylaw to implement the tax will come before council at its next regular meeting on Oct. 21 for final approval. The new tax will go into effect on Jan. 6, 2025.
Once implemented, the MAT of four per cent will be levied by the municipality and collected and remitted to the town by accommodation businesses including hotels/motels, short-term accommodations, bed and breakfasts and commercial rental units. The tax would only be added to overnight stays fewer than 30 nights.
Revenue from the MAT would be split between the town and a local organization that promotes tourism – council has approved the Blue Mountain Village Association to take on this role.
Tim Hendry, the town’s manager of communications and economic development, led the research and development of the MAT for the town. Hendry brought a report to committee of the whole to follow up on a public meeting on the proposed MAT held on Sept. 10.
Hendry said town staff continue to work on the project and communicate to council and the public.
“We are still actively engaging with the industry,” he said.
Coun. Alex Maxwell asked staff if the implementation of a MAT would require the town to hire more staff to collect and process the revenue from the measure.
Hendry explained that provincial legislation allows the town to pay the administrative costs of the MAT off the top.
“The way the regulation is written is to ensure a municipality can implement the MAT in a cost-neutral fashion,” said Hendry, who explained that some municipalities have contracted out the collection and enforcement of their MAT. He said the town is looking to internalize MAT operations.
Council unanimously approved bringing the MAT bylaw to the next meeting on Oct. 21.
