TIAO Proposes Enhancements to Ontario's Municipal Accommodation Tax System

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TIAO Proposes Enhancements to Ontario's Municipal Accommodation Tax System
Municipal Accommodation TaxTourism Industry Association Of OntarioROMA Conference
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The Tourism Industry Association of Ontario (TIAO) calls for improvements to the Municipal Accommodation Tax (MAT) regulations at the Rural Ontario Municipal Association (ROMA) conference. They advocate for reduced red tape, greater transparency, and mandatory participation from short-term rental platforms.

Representatives from the Tourism Industry Association of Ontario (TIAO) recently attended the Rural Ontario Municipal Association (ROMA) conference to advocate for improvements to the Municipal Accommodation Tax (MAT) regulations. Implemented in 2017, the MAT allows Ontario municipalities to levy a tax on accommodations, with 50 municipalities currently utilizing it.

TIAO President and CEO Andrew Siegwart acknowledged the positive outcomes of the MAT, citing investments in tourism marketing, product development, and infrastructure support. He emphasized the need for enhanced collaboration and streamlined consultation processes between municipalities and the tourism industry. Siegwart and his team presented several recommendations to optimize the MAT system, including reducing bureaucratic hurdles, ensuring greater transparency regarding rate changes, and extending its application to college and university accommodations. A key recommendation was to mandate the participation of short-term rental businesses, such as those listed on airbnb.ca, in the tax, currently subject to municipal discretion.Thunder Bay, which implemented a 4% MAT in 2018, recently increased it to 5% in January 2024. The city collected over $3.7 million in 2023 alone. Paul Pepe, Manager of Tourism Thunder Bay, explained that the collected funds are split, with 50% allocated to tourism recreation projects and the remaining 50% distributed to the Community Economic Development Commission (CEDC) Tourism Development Fund. The city's share has primarily been earmarked for the proposed indoor turf facility, while the CEDC fund has supported a wide range of community tourism initiatives, including conventions, sports events, cultural festivals, and new attractions

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Municipal Accommodation Tax Tourism Industry Association Of Ontario ROMA Conference Short-Term Rentals Ontario Municipalities

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