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Municipal Accommodation Tax

By Kelly Jessup

Municipal Accommodation Tax
On Monday April 8th, Peterborough & the Kawarthas Economic Development will be presenting in support of a recommendation to Peterborough City Council to implement a new 4% Municipal Accommodation Tax (MAT) on the purchase price of Transient accommodation in the City. Have questions? We’ve compiled some background information to support accommodation providers in understanding the MAT.

What is being recommended to Council?
In the report to City Council, it is recommending that a new 4% Municipal Accommodation Tax (MAT) be implemented on the purchase price of Transient accommodation in the City effective in the Fall of 2019. It is also recommending that City staff negotiate an agreement with the Ontario Restaurant Hotel & Motel Association for the collection of a mandatory Municipal Accommodation Tax. In accordance with provincial legislation, the funds collected through MAT would be divided (50/50) between the City and Peterborough & the Kawarthas Economic Development (the “eligible tourism entity” whose mandate includes the promotion of tourism via Peterborough & the Kawarthas Tourism).

Where can I find out more information?
If you are an accommodation provider in the City of Peterborough, or another tourism business operator in the region, you might have questions about how the Municipal Accommodation Tax will work. We will continue to update this area of the website with information as it comes together including details on effective date, how it will be administered, and what is being accomplished with the funds. The Tourism Industry Association of Ontario has compiled a List of FAQs on MAT for tourism operators and organizations which is helpful for understanding further.

For questions that you have about how it will work locally, please connect with Tracie Bertrand, Director of Tourism & Communications 705-743-0777 ext. 2129 or by email tbertrand@thekawarthas.ca.

Background
In 2008-2009, in the absence of a provincial framework, the Peterborough Destination Association (PDA) was incorporated as an association; it was made of up five hotels (Holiday Inn, Best Western, Super 8, Quality Inn and Comfort Inn) with the mandate of promoting the City and County of Peterborough as a tourism destination. The PDA used monies collected through the Destination Marketing Fee (DMF) to help fund the tourism marketing efforts of the region. The PDA, when established, was a voluntary program for the participating accommodators in Peterborough.

The DMF was collected as a percentage fee on the room-only portion of a guest bill. A portion of the DMF was used to augment core funding received from the City and County to promote the region as a destination for visitors. In December 2017, the Province granted authority to municipalities to impose a mandatory Municipal Accommodation Tax (MAT) which could apply to hotels, motels, inns, bed & breakfasts, resorts and short-term rental companies of less than 30 days (transient accommodations).
Since this legislation has been in place, many communities across the province have implemented a Municipal Accommodation Tax including London, Windsor, Barrie, Kingston, Cornwall, Oakville, Mississauga, Markham, Brockville, Sudbury, North Bay, Timmins, Cochrane, Sault Ste. Marie, Thunder Bay, Huntsville and Belleville, as well as larger destinations such as Toronto and Ottawa.

Benefits of a Municipal Accommodation Tax
Tourism is big business in Peterborough & the Kawarthas. 3 million visitors come to our region each year and spend approximately $300M in the local economy. We need to continue to stay top-of-mind for visitors in a competitive global tourism market. The Municipal Accommodation Tax, as a replacement to the supplement we received from the now-dissolved Peterborough Destination Association, will allow Peterborough to bolster the work done through destination marketing, enhanced tourism product development, visitor services, strategic partnerships, as well as Meetings, Conferences & Sports Tourism.