Municipal Accommodation Tax (MAT) Review

Staff Report FN011-25 dated June 3, 2025, outlines recommendations concerning the implementation of a Municipal Accommodation Tax in Bracebridge. The staff recommendations include:

1. That the findings from the public consultation on the Municipal Accommodation Tax, as summarized in Appendix “A” to Staff Report FN011-25, be received.
2. That the draft Municipal Accommodation Tax By-law, attached as Appendix “B” to Staff Report FN011-25, be approved.
3. That a Municipal Service Corporation be established to serve as an eligible tourism entity responsible for receiving and distributing 50% of the revenue generated through the Municipal Accommodation Tax, after deducting reasonable collection and administration costs.
4. That the Interim Board of Directors of the Municipal Service Corporation, as outlined in Appendix “C” to Staff Report FN011-25, be approved for inclusion in the 2022-2026 Council Committees and Appointments Terms of Reference and the Appointing By-law.
5. That staff be authorized to undertake public consultation regarding the establishment of the Municipal Service Corporation.
6. That the draft Business Case for the Municipal Service Corporation substantially in the form attached as Appendix “C” to Staff Report FN010-25 be approved, subject to any amendments resulting from the public consultation.
7. That the costs associated with establishing the Municipal Service Corporation be charged to the Municipal Service Corporation and deducted from its future revenue derived from the Municipal Accommodation Tax.
8. That the Director of Planning and Development and the Director of Finance/Treasurer report back to General Committee in the first half of 2026 with a recommendation to update the composition of the Board of Directors for the Municipal Service Corporation to include majority representation from Bracebridge’s tourism/accommodation sector.

View the full report located in the reference section on this project page.

On May 17, 2017, the Province enacted Bill 127, Stronger, Healthier Ontario Act 2017, which provides single and lower-tier municipalities with the authority to levy a transient accommodation tax or MAT. Later that year, the Province enacted Ontario Regulation 435/17: Transient Accommodation Tax, which contains the provisions necessary to implement a MAT in accordance with s. 400.1 of the Municipal Act, 2001. The Regulation allows single and lower-tier municipalities the ability to implement a MAT through a by-law with a set tax rate. The Regulation also permits municipalities to enter into agreements with entities to collect a MAT, acting as agents for the municipality, and prescribes a revenue sharing disposition formula where some of the proceeds are transferred to an eligible local tourism organization.

Ontario Regulation 435/17 is permissive in scope, allowing municipalities to apply a MAT to various accommodation sectors, provided the accommodation is short-term in nature. The public consultation will help the Town in implementing a MAT in Bracebridge.

The Town of Bracebridge is located in the Heart of Muskoka, the epitome of Canada’s Cottage Country. With a population in excess of 17,000 permanent residents that doubles during the summer months, the community has a diversified economy that is highlighted by strong construction, hospitality and professional sectors. Bracebridge is the steward of the cottage country brand and is teaching the world the power of living the Muskoka lifestyle in its spirit, the arts, food, home and recreation. The Town is positioned on the 45th parallel, halfway between the Equator and the North Pole, and is recognized as Santa’s summer home.

Bracebridge is home to a vibrant tourism sector that welcomes an influx of visitors annually to enjoy local attractions, seasonal properties, festivals, events and more. Tourism is a significant contributor to the local economy.