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Municipal Accommodation Tax (MAT)

With Council's direction, the Township of Lake of Bays is considering a 4% Municipal Accommodation Tax (MAT) to be paid by visitors staying in overnight accommodations. This initiative is being explored based on the success and benefits seen in other municipalities, including neighbouring ones, with similar programs. 

The MAT helps boost tourism, improve local infrastructure, support businesses, ease the tax load on residents, and enhances the visitor experience, ultimately benefiting accommodation providers in the area.

We encourage residents and business owners to get involved by learning more about the program, reviewing our draft by-law, and participating in our ongoing public engagement. Your feedback is important in shaping how this program will be implemented in our community.


What is a Municipal Accommodation Tax (MAT)?

A MAT is a widely adopted program in municipalities across Ontario and Canada, aimed at supporting and enhancing local tourism industries. It is a fee paid by visitors renting short-term accommodations in Lake of Bays. Here are the key points:

Rate

4% of the accommodation cost

Who pays?

Visitors staying in short-term accommodations (less than 30 consecutive days)

Who collects?

Accommodation providers (resorts, motels, bed and breakfasts, short-term rentals)

Proposed start date

January 1, 2025

Purpose

To generate revenue directed to advancing tourism and economic development opportunities for businesses, citizens, and visitors

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Benefits of the MAT

The MAT Program offers several compelling benefits for those living in and visiting the Township of Lake of Bays for various reasons, including:

Events, Attractions and Tourism Promotion

Part of the MAT revenue is dedicated to tourism promotion and development, resulting in significant investments in the local tourism industry.

Potential uses include:

  • Marketing campaigns to attract visitors
  • Hosting major events and festivals
  • Enhancing local attractions
  • Developing new tourism products

Infrastructure and Service Improvements

The portion of MAT revenue retained by municipalities can be used for various initiatives that support tourism and economic development

Examples of funded projects:

  • Tourism infrastructure improvements
  • Sports and cultural facilities
  • Outdoor activity enhancements
  • Additional staff resources for tourism efforts

Reduced Pressure on Rate Payer

The MAT generates funds from visitors staying in local accommodations, allowing the Township to finance economic development projects and initiatives without relying on local tax rates.

Economic Growth

MAT funds can support projects that benefit both visitors and residents, stimulating the local economy

Economic impacts:

  • Increased visitor spending
  • Job creation in tourism and related sectors
  • Enhanced quality of life for residents

Where Does the Money Go?

Revenue from the MAT program is divided into two equal parts:

"Pie chart illustrating the equal distribution of the 4% Municipal Accommodation Tax collected."

How to Get Involved

We encourage residents, accommodators, and stakeholders to actively participate in shaping the future of the Municipal Accommodation Tax (MAT) in the Township of Lake of Bays. 

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1. Read the Draft By-law

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2. Take the Survey

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3. Speak at the Public Meeting

* Note: Preregistration to speak at the public meeting is required

Timeline

🟢 Draft By-law Released for Public Review & Comment 
September 20, 2024


⚫ Survey Closing Date
October 18, 2024


⚫ Public Council Meeting Considering Draft By-law
November 12, 2024

Preregistration to speak is required


⚫ Proposed Date for MAT Program Implementation
January 1, 2025


⚫  First Remittance Due Date
April 30, 2025


Questions?

Morgan Lonsdale
Economic Development Coordinator
Township of Lake of Bays
E: mlonsdale@lakeofbays.on.ca
T: (705) 635-2272 ext.1235

Patricia Allen
Director of Finance
Township of Lake of Bays
E: pallen@lakeofbays.on.ca
T: (705) 635-2272 ext.1233

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