Leamington council heard Tourism Windsor Essex Pelee Island's (TWEPI) pitch on Tuesday night requesting a Municipal Accommodation Tax (MAT) program be implemented.
TWEPI has been pitching all seven municipalities, with LaSalle, Tecumseh, Essex, Kingsville and Amherstburg all agreeing to have their administrations report back on the tax.
TWEPI informed Leamington councillors that at the end of 2024, there were 377 short term rental listings in the town, with a 50 per cent occupation rate.
The estimated 2024 revenue through those listings was $15.3 million.
If the town was to charge a 4 per cent MAT based off the estimated revenue, $610,000 in MAT would be generated, with the town keeping $305,000 or 50 per cent of that.
If a 6 per cent MAT was charged, based off the estimated revenue, $916,000 in MAT would be generated, with the town keeping $458,000 or 50 per cent of that.
Councillor Paul Tiessen said the proposal was a great idea.
"This fits into one of those categories where growth pays for growth, we're going to spend money trying to attract tourists to the area regardless," Tiessen said.
Tiessen said when tourists come to the area, it puts a strain on the town's infrastructure.
"MAT tax dollars go to fixing up the amphitheatre, or the beach, or whatever it takes to bring them here, I'm all for it," Tiessen said.
Leamington council agreed to have its administration report back by TWEPI's deadline of August 31, 2025.