More county municipalities show interest in Municipal Accommodation Tax

The list of Essex County municipalities expressing an interest in implementing a tourism levy grew on Monday evening. Robert Lothian reports.

The list of Essex County municipalities expressing an interest in implementing a tourism levy grew on Monday evening.

Officials at both the Town of LaSalle and the Municipality of Leamington gave the greenlight to continue discussions towards a Municipal Accommodation Tax (MAT).

“So anytime you can add to your revenue source and it’s not on the… homeowners to pay that tax, it makes more sense,” said Crystal Meloche, the mayor of LaSalle.

Earlier this year, Tourism Windsor Essex Pelee Island (TWEPI) asked each municipality to consider implementing a MAT to further benefit from tourism.

Visitors would pay a levy when staying at hotels or other overnight stays, which would be split between the municipality and TWEPI.

According to figures in a staff report, LaSalle has about 103 accommodation listings with an average occupancy rate of 51%, generating $1.7 million annually.

Based on a 4 per cent MAT, this would generate about $70,000 to split between the town and agency.

Between hopes for LaSalle’s first hotel and council anticipating a report on licensing short-term rentals, Meloche said implementing the MAT in the near future is a proactive measure.

“Those funds that we would get could go towards new events. It could go towards our LaSalle landing, anything tourism related, help invest in our community,” Meloche said.

In Leamington, council agreed to take the next step towards a MAT despite some hesitancy.

Data from TWEPI indicated Leamington has 372 short-term rental listings and 253 motel and hotel accommodations.

If the occupancy rate is 50 per cent, the 4 per cent MAT would generate $610,000 in added revenue.

These funds must be used municipally to benefit tourism and infrastructure.

“When I go to Seacliff Park every Sunday and I see that park jammed full of people that aren’t from our town, and yet our town has paid for that park and has paid for those all those amenities, and we have no way of getting that money back, that’s why I’m pro-MAT tax,” said Hilda MacDonald, the Leamington’s mayor.

TWEPI will now use the decisions from each municipality to lay out how the MAT program will be administered and the associated costs. Municipalities will still have to give more approvals and determine the rate of the levy before moving forward.