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Town of Huntsville
Customer Service
37 Main Street East Huntsville ON P1H 1A1

Phone: 705-789-1751
Fax: 705-788-5153

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Municipal Accommodation Tax

The Municipal Accommodation Tax is a new revenue tool created for municipalities by the Ontario Government through recent changes to the Municipal Act. These changes could allow Lower Tier municipalities to impose a tax that would be applied to individuals who utilize accommodations within that community. While decisions such as the rate of tax and funding collection are up to each Municipality to determine, the legislation requires that a percentage of the funds collected must be allocated to a Tourism Marketing Organization and that the funds collected be spent on related Tourism services and infrastructure.

Backgrounder

In December 2017, Council confirmed its desire to impose the Tax on accommodations within the Town of Huntsville and staff where authorized to engage with other municipalities and industry stakeholders and report back with options for implementation and administration. For the full report outlining the legislation and by-law research please see the following December 19 agenda.

Since the December report Municipal staff engaged with local partners and other municipalities across the province. Research found that most municipalities who chose to implement the tax quickly had pre-existing Destination Marketing Funds or organizations in existence. To maximize the impact of this program the Town understood it needed a strong foundation based in strategy for this tax to be successfully implemented and that collaboration with the tourism industry was essential. As recently as September 26, Staff in partnership with the Huntsville Hotel Motel Association presented a report to General Committee outlining 8 months of research and strategy on options for implementing this revenue tool. The report highlights are as follows. For the full report please visit the September 26 General Committee agenda.
  • Municipal Research - what are other municipalities doing across Ontario.
  • What do local tourism industry partners prefer.
  • Proposed options for; tax percentages, collection, operational details (working group, setup of a new tourism entity), implementation date and funding allocation

Proposed Timeline

The Town of Huntsville is currently working toward phase 1 of the program and will continue to update the community as milestones are met.
  • Phase 1: Council establishes working group and passes by-law October 29
  • Phase 2: RFP for Collection issued
  • PHASE 3 Working Group Reports Back to GC/Council with Terms of reference for new entity
  • PHASE 4: Municipality establishes non-share capital corporation "new tourism entity" February 2019
  • PHASE 5: Transfer payment agreement created and presented to GC/ Council February 2019
  • PHASE 6: MAT Collection Begins April 1, 2019
  • PHASE 7: New Tourism Entity signs TPA and Begins meeting
  • PHASE 8: Tourism entity endorses strategic plan and begins implementation
  • PHASE 9: Municipality explores licensing / short terms vacation rentals to be included in MAT program
  • PHASE 10: Transfer Payment Agreement revisited at the end of the 3 year pilot project.

Information for Guests

  • When will the municipal accommodation tax take effect in Huntsville?
    • The tax will take effect April 1, 2019.
  • What is the amount of the municipal accommodation tax?
    • The municipal accommodation tax rate is 4%.
  • Can I refuse to pay this tax? Is this a mandatory or voluntary tax?
    • No you cannot refuse to pay this tax. The municipal accommodation tax is mandatory and must be paid to the accommodation operator at the same time that you pay for the booking.
  • Do I have to pay the Municipal Accommodation Tax if I booked my hotel prior to the implementation of the Municipal Accommodation Tax (April 1st, 2019)?
    • If your accommodation was booked and paid for prior to April 1, 2019, the tax will not be applicable. If it was paid for on April 1, 2019 or onwards, the tax is applicable.

For More Information Contact

Scott Ovell Economic Development Coordinator 705-789-1751 ext. 3035