Lakeshore council have voted in favour of moving forward with exploring the implementation of a Municipal Accommodation Tax (MAT).
Lakeshore was one of many local municipalities to hear a presentation from Tourism Windsor Essex Pelee Island (TWEPI) that seeks to have all seven municipalities come on board with their MAT program.
Windsor has had a MAT in place since 2018, and sits at six per cent. This tax is collected by accommodation providers - such as hotels or short term rentals (STRs) - and remitted to the municipality and TWEPI to support tourism promotion and development.
Lakeshore council learned that at the end of 2024, there were 165 accommodation listings in the town through short term rentals and hotels/motels, with a 50 per cent occupation rate, and an estimated revenue of $8.6-million throughout 2024.
If a 4 per cent MAT is charged based off the estimated revenue, $344,000 in MAT would be generated, and if a 6 per cent MAT was charged, based off the estimated revenue, $517,000 in MAT would be generated. Those revenues would be split 50/50 between the municipality and TWEPI.
Councillor Kelsey Santarossa was in favour and says this is something that has been discussed for many years.
"I'd love to see this move forward with the hotel period because the direction we've given around the STRs is no net new, so at this point we have to serve baseline and those that are going to come on board."
Councillor Ryan McNamara was in favour and says this is the right way forward.
"Just look at the hotel in my ward, that Holiday Inn Express I believe is the highest occupancy rate of any Holiday Inn Express in southwestern Ontario. And so that's definitely a very good revenue stream for us, and I think it gives us the ability to promote tourism, and it gives us the ability to offset some of the costs to our residents, which is - in my opinion - fiscally sound policy."
Councillor Larissa Vogler was also in favour and says all accommodation types need to be included in the upcoming report.
"I don't think it's fair, it's not an even playing field to ask the hotels who have been running above board, fully legal, to demand that of their guests, and then not to ask the STRs who are legal non-conforming to do the same thing, and they are largely the cause of the need for enforcement."
A zoning by-law amendment to prohibit short-term rentals throughout the municipality was approved in 2023, meaning no new STRs were allowed to be created after the bylaw passed.
The only councillor opposed to the motion to continue conversations with TWEPI was deputy mayor Kirk Walstedt.
TWEPI is asking for decisions to be made by August 31, 2025.
A report will be presented to Lakeshore council at a later date regarding options of implementing a Municipal Accommodation Tax.