Lakeshore council has voted 6-2 to direct administration to prepare a report on establishing a six per cent Municipal Accommodation Tax (MAT).
Ward 3 coun. Kelsey Santarossa’s motion on Tuesday night called for staff to bring back the draft bylaw required to establish the tax, along with policies governing how the revenue would be distributed.
The motion proposes directing 70 per cent of Lakeshore’s share of MAT revenue into a new Regional Parks Reserve dedicated to the development, enhancement and long-term sustainability of facilities such as the Atlas Tube Recreation Centre and Lakeview Park. The remaining 30 per cent would be directed to the municipality’s Economic Development Reserve.
Santarossa said Lakeshore’s hotel is already collecting a six per cent MAT, but the municipality is not currently receiving any of that revenue.
“I think that it’s important that if these funds are collected that were using them in ways that were already seeing tourism drive in the municipality and investing the dollars where our residents too can benefit from them,” Santarosa said.
Ward 6 coun. Larissa Vogler said she supported the concept of an accommodation tax, but not before council addresses short-term rentals.
“Until we can collect it from every accommodation, we shouldn’t collect it from any accommodation. And we haven’t figured out how we’re dealing with [short-term rentals],” Vogler said.
Ward 1 coun. Ryan McNamara said visitor dollars should help maintain the facilities visitors use.
“The wear and tear on the Atlas Tube Centre for all of the tournaments. It’s our facilities that our taxpayers are paying to maintain. This allows us to put those funds back into maintaining those facilities. I think it’s a no brainer,” McNamara said.
Administration told council that the municipality has limited resources to track every short-term rental operator but could practically work with the local hotel that is already charging the fee.
The motion also requests annual reporting from Tourism Windsor Essex Pelee Island on how Lakeshore’s accommodation tax revenue is spent.
Ward 4 coun. John Kerr joined Vogler in opposition.