Lake of Bays forms new accommodation tax task force

50% of funds will be used to promote the area

Lake of Bays Council appointed a Task Force for their new Municipal Accommodation Tax (MAT) program, in the May 13, 2025, meeting.

Staff advised that in 2017 the provincial government enacted Bill127, Stronger, Healthier Ontario Act, “providing municipalities with the authority to levy a transient accommodations tax.”

Municipalities can charge an additional tax from short-term accommodations, such as hotels, resorts, inns, and short-term rentals, as an additional source of revenue to support tourism in the community.

In May 2024 the Township’s Council approved the new program and passed a new By-law, following public feedback.

Visitors staying in short-term accommodations in the Township for a maximum of 30 days will be charged an addition 4% tax as a part of the program.

According to the staff report, “Fifty percent (50%) of the revenue from this tax is to be shared with one or more eligible tourism entities to be used for the exclusive purpose of promoting tourism.”

It adds that the Township launched a public survey from September 20^th until October 18 last year “regarding the potential impacts, benefits, and concerns related to the introduction of the Municipal Accommodation Tax.”

The survey resulted in 199 responses, with 187 being from short-term rental (STR) owners and 12 from resorts, with concerns primarily about “a lack of clarity regarding how the funds would be allocated, as well as concerns surrounding the selection of the partnership organization.”

The report continues that some STR providers and resort owners also expressed opposition about implementation of the new program in the November Council meeting, however, the Township is going ahead with it.

Staff indicated that the new MAT Task Force will be responsible for “guidance of the plan, spending priorities and tourism partnerships.”

According to the report, the Task Force will also be responsible for “ensuring comprehensive and inclusive community engagement throughout the process.”

Staff said that members will be chosen based on criteria such as experience and involvement in the tourism industry, and leadership qualities.

The individuals recommended for appointment include CAO Geoff Carleton, Councillors Robert Lacroix and Michael Peppard, Deputy Clerk Laura Vaisanen, Economic Development Coordinator Morgan Lonsdale, Executive Directors Halley Clover and Val Hamilton, Colonial Bay Resort Owner Bruce Howell, and STR Operator Patti Dryden.

Staff advised that next steps include the Task Force meeting from June until September for discussions and presenting recommendations to Council for implementing MAT and a By-law in October, followed by public feedback.