Municipal accommodation tax up for debate in Essex

AM800-News-Essex-Town-Hall

Essex council will consider Monday evening whether to move ahead with a municipal accommodation tax (MAT).

A MAT would add a 4 per cent fee to hotel and short-term rental stays paid by visitors.

The money would be split between the town and Tourism Windsor-Essex Pelee Island (TWEPI) to help fund tourism, events, and amenities.

According to the report, a MAT could generate about $150,000 a year for the town while helping ease pressure on local taxpayers.

Mayor Sherry Bondy said she supports exploring new revenue sources but doesn’t want to rush the decision.

She added that public feedback has been mixed and more consultation is needed.

“I would still like to, this is just my personal opinion, I’d still like to get more public feedback because I do believe it is a big move,” said Bondy.

“I do feel that we need to really look at alternative revenue sources. It’s something that’s been in our strategic plan where we’re trying to offset costs on residents.”

She said the bigger question is who should pay for tourism costs.

“Do residents in the Town of Essex want to pay for tourism, yes or no, and if the answer is yes, then maybe a MAT tax isn’t needed,” she said. “If the answer is no, then a MAT tax would offset those expenses related to tourism.”

Administration is recommending a third-party collector to keep costs low and reduce the workload for town staff.

Bondy said it was a viable option.

“I know our administration has spent a lot of time on this file,” she said.

“They put a lot of hours in, so having the Ontario Restaurant Hotel & Motel Association (ORHMA) look at it it lowers the administrative burden and it’s pretty financially feasible. It’s only around $10,000 to $13,000 a year, so it’s a proven system across Ontario.”

LaSalle implemented a municipal accommodation tax last summer. Tecumseh has introduced the tax for hotels only, while Kingsville opted not to pursue it.

Lakeshore and Amherstburg are still exploring the possibility of implementing a MAT.