Proposed LaSalle MAT could bring in over $100K annually from short-term rentals, future hotels

Source: Town of LaSalle/Facebook.

LaSalle council will be asked to move forward with implementing a municipal accommodation tax (MAT).

Council will meet Tuesday evening with a report looking for the town’s support and participation in the MAT partnership with Tourism Windsor Essex Pelee Island (TWEPI).

Earlier this year, TWEPI visited each municipality in Essex County looking for interest in starting a MAT. The MAT revenue would be split equally between the town and TWEPI, with the town’s share supporting local tourism initiatives.

Based on 2024 numbers, the Town of LaSalle had 103 accommodation listings with an average occupancy rate of 51 per cent - generating approximately $1.7-million in rental revenue.

A four per cent MAT would generate approximately $70,000 in annual revenue, while a six per cent MAT would generate $104,000 annually.

Currently, the Town of LaSalle does not have an operating hotel, and does not have a short-term rental bylaw.

LaSalle Mayor Crystal Meloche says the town continues to grow.

“We’re starting to see a lot of short-term rentals which will be the subject of another report in the near future where we can start licensing them so that we can collect this MAT from them. And also it would be a source of revenue when we get a new hotel in the Town of LaSalle. And so it’s giving us an opportunity to collect revenue that we haven’t had before.”

Maloche says she likes the idea of passing the MAT prior to passing a short-term rental bylaw.

“I think it’s great to be able to have this bylaw passed if we get approval from council for MAT, that way when we get to that stage of approving an STR licensing program, as soon as you roll that out the MAT is already in place, it’s not like you’re going to go back and try to add it, and make these changes.”

To date, only Kingsville has indicated that it does not wish to implement a MAT.

Lakeshore, Essex and Amherstburg councils have directed respective administrations to proceed with discussions with TWEPI.

Tecumseh council has indicated its interest in pursuing a MAT on hotels only.

Council will meet at 6 p.m.

— Meagan Delaurier/AM800 News