Bracebridge getting closer to charging a Municipal Accommodation Tax to short term rentals

50% of the funds raising will go to tourism initiatives

Bracebridge General Committee approved a new draft Municipal Tax (MAT) By-law, in the June 3rd meeting.

According to the staff report, the Town has conducted both professional and public consultation for implementing the new MAT program that will charge a 4% tax to short term accommodations (less than 28 days) to create revenue to support tourism.

Short term accommodations applicable would include hotels, motels, short term rentals (STRs), bed and breakfasts, inns and resorts.

Public consultation resulted in a mixed response, with 58% of respondents supporting the new program or agreeing that having it in nearby municipalities strengthened their support for it in Bracebridge, and 42% were opposed to it.

Public concerns include the advantage the Town currently has by not charging the MAT, how the Town will use the revenue to promote tourism, that it should be lower than 4%, that it should be applicable only to STRs because of disturbances of them in the community, rising costs to visitors, adding to existing strains on STRs, challenges enforcing it on unlicensed STRS.

Other discussions included other potential uses for the MAT revenue, with suggestions like using it for tourist related infrastructure like roads and bridges and enhancing By-law enforcement.

The report adds that the 4% rate is consistent with what other area municipalities charge, and that charging less than that “would likely generate insufficient revenue to justify the internal resources required to administer the tax.” Charging more would impact the Town’s competitiveness and “discourage compliance.”

Councillor, Don Smith, said, “It’s an important amount of money that will be used for a number of activities,” and recommended that staff create a specific reserve that would be available for upcoming projects.

Staff advised that they considered creating a MAT reserve with a spending policy however, recommend “an open approach instead.”

Mayor, Rick Maloney, agreed to having a specific reserve to ensure they have money for related projects “to enhance visitor experience,” as well as for resident experiences, such as trails and parks, versus being used for road work like filling potholes.

He added that a reserve would also make it transparent regarding what the money is used for.

Staff estimated the Town can generate approximately $530,000 in revenue, using Gravenhurst’s $570,000 last year as a marker.

They added that currently the Town only has 34 STRs licenced, with another 53 in the process, with some that will be approved and others not. They added that they “know there are more,” which can have an impact on the numbers changing.

Deputy Mayor, Brenda Rhodes, said she’s happy about the new program because it will also contribute to community events.

According to the report, next steps include a public consultation regarding establishing a Municipal Service Corporation (MSC), as a tourism entity that will be responsible for distributing 50% of the revenue generated from MAT “after deducting reasonable collection and administration costs.”

Staff will report back to Committee in the first quarter of 2026 with a recommendation for the Board of Directors for the MSC, which is said to primarily be represented by the Town’s tourism/accommodation sector.