Municipal accommodation tax begins Sept. 1 in Centre Wellington
Five per cent tax will apply to stays in hotels, short-term rentals, bed and breakfasts
ELORA – Centre Wellington will move forward with a municipal accommodation tax (MAT) beginning Sept. 1.
A five per cent levy will be applied to every “transient accommodation,” which includes hotel stays, short-term rentals and bed and breakfasts.
Council approved the initiative at its April 27 meeting.
According to a report by treasurer Adam McNabb, “a 5% rate supports the township’s broader objectives related to the establishment of the Municipal Service Corporation (MSC) and the reinvestment of MAT revenues into destination marketing, visitor servicing and tourism-supported infrastructure.”
An outside consultant estimated the MAT tax will raise about $410,000 annually, which will fund the newly created Economic Development and Tourism Municipal Services Corporation.
Paid parking, OLG revenue and a few other sources will also fund the MSC.
That corporation will be owned by the township but overseen by a board of directors that will manage local tourism and economic growth.
The board was seeking five volunteer members, but applications closed on May 6.
Councillor Lisa MacDonald wanted the MAT to be 3.5%, but CAO Dan Wilson said the tax is in keeping with surrounding municipalities that have it and it’s a necessary part of growth paying for growth and tourism paying for tourism.
