Lakeshore has opted to wait on making a decision on bringing in a Municipal Accommodations Tax.
After a lengthy debate Tuesday night, council voted to defer the matter until administration completes a report on regulating short-term rentals such as Airbnbs.
The proposed tax would have seen a 4 per cent charge added to the bill on hotel, motel, inn and resort accommodations in Lakeshore.
According to a report, the tax could generate as much as $131,000 a year with the revenue being split between Tourism Windsor Essex Pelee Island and the municipality to further promote tourism programming.
The town's newly opened Holiday Inn Express and Suites approached council about the tax as it's already built into the hotel's pricing model.
Several other regions, including Windsor, already have the tax in place.