Lake of Bays Council Approves Municipal Accommodation Tax to Boost Tourism

(Lake of Bays, ON) – At its Tuesday, October 14, 2025 meeting, Lake of Bays Township Council approved a by-law to implement a Municipal Accommodation Tax (MAT), effective January 1, 2026.

Guests staying at hotels, motels, bed and breakfasts and short-term rental accommodations in Lake of Bays will be subject to a four percent (4%) MAT. The tax aligns with provincial regulations and with neighbouring communities including Huntsville, Bracebridge and Gravenhurst.

The MAT program was shaped by extensive public consultations with local accommodation providers, as well as input from an advisory group.

As part of the program, half of all MAT proceeds will be managed by a newly established independent Lake of Bays Destination Marketing Organization (DMO). Led by local accommodation providers, the DMO will direct funding to priority tourism initiatives based on a forthcoming tourism strategy. The remaining fifty percent (50%) of revenue will be retained by the Township to support economic development, recreation and other tourism-related initiatives that benefit residents, businesses and visitors alike.

Key points:
- MAT collection begins January 1, 2026.
- The four percent (4%) tax rate applies only to the room cost and must be shown on guests’ invoice.
- Accommodation providers are responsible for collecting and remitting the tax on a quarterly basis. 
- The first deadline for remittance is April 30, 2026.
- Bookings made before January 1, 2026 are not subject to the tax.

An FAQ is available to help ensure a smooth launch for accommodation providers. Residents and stakeholders are encouraged to learn more, review the MAT By-law and access the FAQ at lakeofbays.on.ca/mat.

Quote:

“We’ve taken our time with this process because we wanted to get it right and ensure everyone’s voice was heard. What began as a conversation in 2021 has become a meaningful way for visitors to support the place they want to visit,” said Morgan Lonsdale, Economic Development Officer. “The MAT will open a stream that helps fund local events, bring fresh energy to the hearts of our hamlets, and give the community the resources it needs to discover and define Lake of Bays’ unique tourism needs and culture.”

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Media Contact:
Media@lakeofbays.on.ca