The Town of Tecumseh will continue conversations of implementing a municipal accommodation tax (MAT).
Council met Tuesday evening and was presented with a report of two options for implementing the tax.
Earlier this year, Tourism Windsor-Essex Pelee Island (TWEPI) visited each municipality in Essex County looking for interest in starting a MAT. The MAT revenue would be split equally between the town and TWEPI, with the town's share supporting local tourism initiatives.
Two options were presented to council: to apply the tax to hotels only, or to apply the tax to hotels and short-term rentals (STRs).
Council voted in favour of implementing the tax to hotels only due to disadvantages of applying the tax to short-term rentals such as increased costs to implement the program with respect to licensing and compliance related to STRs, and the implementation of a STR by-law.
As construction of the town's first hotel is nearing completion, a 142-room hotel could expect to generate $116,000 per year with a 4 per cent MAT. Meanwhile, TWEPI estimates there are 21 STR listings in Tecumseh, which would generate $34,000 at a 4 per cent MAT.
Town administration will now continue conversations with TWEPI and will report back to council regarding next steps for further direction and implementation.
The Town of Essex and the Town of Amherstburg have committed to continuing conversations with TWEPI, however the Town of Kingsville has stated they will not be moving forward with a MAT at this time.