Municipal Accommodation Tax (MAT)

With Council's direction, the Township of Lake of Bays is considering a 4% Municipal Accommodation Tax (MAT) to be paid by visitors staying in overnight accommodations. This initiative is being explored based on the success and benefits seen in other municipalities, including neighbouring ones, with similar programs.

The MAT helps boost tourism, improve local infrastructure, support businesses, ease the tax load on residents, and enhances the visitor experience, ultimately benefiting accommodation providers in the area.

We encourage residents and business owners to get involved by learning more about the program, reviewing our draft by-law, and participating in our ongoing public engagement. Your feedback is important in shaping how this program will be implemented in our community.

Read Draft By-law

Take the Survey

Public Meeting

What is a Municipal Accommodation Tax (MAT)?

A MAT is a widely adopted program in municipalities across Ontario and Canada, aimed at supporting and enhancing local tourism industries. It is a fee paid by visitors renting short-term accommodations in Lake of Bays. Here are the key points:

Rate

4% of the accommodation cost

Who pays?

Visitors staying in short-term accommodations (less than 30 consecutive days)

Who collects?

Accommodation providers (resorts, motels, bed and breakfasts, short-term rentals)

Proposed start date

January 1, 2025

Purpose

To generate revenue directed to advancing tourism and economic development opportunities for businesses, citizens, and visitors

Benefits of the MAT

The MAT Program offers several compelling benefits for those living in and visiting the Township of Lake of Bays for various reasons, including:

Events, Attractions and Tourism Promotion

Part of the MAT revenue is dedicated to tourism promotion and development, resulting in significant investments in the local tourism industry.

Potential uses include:

Marketing campaigns to attract visitors
Hosting major events and festivals
Enhancing local attractions
Developing new tourism products

Infrastructure and Service Improvements

The portion of MAT revenue retained by municipalities can be used for various initiatives that support tourism and economic development

Examples of funded projects:

Tourism infrastructure improvements
Sports and cultural facilities
Outdoor activity enhancements
Additional staff resources for tourism efforts

Reduced Pressure on Rate Payer

The MAT generates funds from visitors staying in local accommodations, allowing the Township to finance economic development projects and initiatives without relying on local tax rates.

Economic Growth

MAT funds can support projects that benefit both visitors and residents, stimulating the local economy

Economic impacts:

Increased visitor spending
Job creation in tourism and related sectors
Enhanced quality of life for residents

Where Does the Money Go?

Revenue from the MAT program is divided into two equal parts:

"Pie chart illustrating the equal distribution of the 4% Municipal Accommodation Tax collected."

50% of MAT revenue has to be sent to an eligible tourism entity. This ensures that a significant portion of the funds generated from visitors is reinvested into promoting and developing local tourism, which can lead to increased visitation and economic benefits for the community.

The 50% of MAT revenue that stays with the Township of Lake of Bays can be utilized for various council-approved initiatives and partnerships with local organizations, as long as they fall into one of the following categories:

New Tourism Infrastructure
- Examples: Wayfinding signage, biking or hiking trails, new tourist attractions
Capital Investment for Recreation or Tourism Facilities
- Examples: Improvements to arenas, sports fields, parks, trails, libraries, community centers, accessibility upgrades
Economic Development Programming
- Examples: Workshops for businesses, workforce development initiatives, community improvement programs
Support for Community Events and Organizations
- Examples: Funding for local festivals
Affordable Housing Programs or Initiatives
- Examples: Development charge/permit fee rebates related to affordable housing
Administrative Expenses Related to MAT Program
- Example: Staff time for collection of MAT revenue
Public and Private Sector Partnerships
- Leveraging existing resources to create new collaborations

How to Get Involved

We encourage residents, accommodators, and stakeholders to actively participate in shaping the future of the Municipal Accommodation Tax (MAT) in the Township of Lake of Bays.