New Tecumseth councillors kill accommodation tax idea

Posted November 6, 2024

 

New Tecumseth's short term rental market - hotel, inns, Airbnb, etc - will not have to implement a Municipal Accommodation Tax (MAT), following council's defeat of a recommendation to explore the idea.

​

The proposal had come forward from the Town's Economic Development office as a means of generating a new revenue stream.

​

Municipalities have the authority to charge MAT for hotel, motel, B&B including Airbnb, VRBO and camp site stays. The charge only applies if an accommodation is rented for less than 30 days.

​

The sample used for council was a four per cent MAT, which could generate between $605k to $913K (after adminstration fees) based on 40 to 60 per cent occupancy rates, out of a total 425 rooms identified in New Tecumseth, more than half at the Nottawasaga Resort.​​​