Background

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.