Kincardine council received an update on the potential of implementing an municipal accommodations tax.
The investigation also includes the feasibility into a license program for short term rental accommodations.
Council directed staff to investigation the implementation of either of the two policies within the Municipality of Kincardine.
The report includes a MAT financial forecast, consultation with different groups to understand the impacts, benefits, and challenges of potential implementation.
Municipal staff engaged with local residents and businesses, and received a considerable amount of feedback.
Strategic Initiatives Manager Lorie Fioze shared, “There was a really substantial apprehension about the potential negative impacts on tourism, the availability on short-term accommodations for tourists, and on revenue for businesses that rely on tourism.”
There was also concern that implementing a municipal accommodation tax would negatively impact transient workers for Bruce Power.
“The fee is collected by accommodaters, paid for by tourists and visitors, so it’s not paid for by accommodaters or residents, it’s paid for by visitors,” explained Kevin McPhillips, Director of Research and Innovation from McSweeney & Associates Consulting. “And the important note for the Municipality of Kincardine given the transient workforce, is that fee only applies to stays under 28 days. That is a legislative requirement.”
In terms of housing impact, 43% believed STRAs has a strong negative to negative impact on housing availability, 12% said they had no impact, and 23% felt they had a strong positive or
positive impact.
Sixty-one percent of respondents are aware of STRAs in their neighbourhood. A majority of respondents had not experienced disruptions from STRAs, while 21% had experienced disruptions.
Provincial legislation notes that the tax allows municipalities to charge up to 4–6% on short-term accommodations.
Of Ontario’s 444 municipalities, around 50 of them have implemented or are in the process of implementing MAT, including South Bruce Peninsula, The Town of the Blue Mountains, and Midland.
Council will re-visit the topic at their meeting on September 10th.