LOB approve 4% accommodation tax

The tax takes effect January 1st is will help fund tourism initiatives

The Township of Lake of Bays Council approved a Municipal Accommodation Tax (MAT) By-law, in the October 14, 2025, meeting.

Staff indicated that the approval also included adopting a supporting policy and amendments to the township’s Administrative Monetary Penalty System (AMPS).

The program outlines that 4% of MAT will be collected beginning January 1^st, 2026, from accommodations such as hotels, lodges, bed and breakfasts, motels, inns, and short-term rentals (STR) - transient accommodation for a period of less than 30 days.

Staff estimated that the MAT rate can generate $1.5 million for the township.

Half of the reserves collected by the township will go to a newly established Non-Share Capital Corporation (NSCC) that will act as the Destination Marketing Organization (DMO), and the other half will go to the township.

Staff also reported that the township will retain 100% of reserves collected in the first year allowing time for the creation of a tourism strategy and then be transferred to the NSCC in the second year with recommendations for consideration in 2027 budgets.

Start up costs for the NSCC will be advanced by the township and be repaid once MAT revenue is generated.

Staff advised that public feedback from delegations and survey results highlighted two key concerns, including “accountability about MAT revenue allocation, and the need for transparency and accountability in partner selection.”

Councillor, Mike Peppard, said what impacted his support in favour of the MAT program is the “level of tourism innovation” – the ability of the township to get tourists.

Staff added that the township can “remain different” and stand out with the new program, while supporting businesses and tourism.

Staff were directed to proceed with a Request for Proposal for consulting services to develop a Tourism Strategy in partnership with the NSCC, and the costs will be included in the 2026 budget and repaid from the MAT later.