Tecumseh is moving ahead with a four per cent Municipal Accommodation Tax (MAT) on hotel stays beginning Jan. 1, 2027. Council approved the rate Tuesday night and directed administration to prepare a bylaw establishing the tax for its next regular meeting. Half of the net revenue collected will go to Tourism Windsor Essex Pelee Island (TWEPI) to promote tourism, while the other half will be placed in a new Town Tourism Reserve. The town will also develop a policy outlining how its share can be used. Administration estimates a 142-room hotel could generate about $116,000 a year through the tax. Tecumseh’s share would be about $58,000 before administrative costs. Council first agreed to pursue a hotel-only MAT in Aug. 2025. Short-term rentals will not be included, although the town says they could be added in the future.
