MIDLAND TO CONSIDER MUNICIPAL ACCOMMODATION TAX

Tourists visiting the Town of Midland could eventually have to pay a four per cent municipal accommodation tax.

The Province of Ontario has given municipalities the ability to levy a hotel tax. This tax would be tacked on to rates charged by local hotels and short-term rental accommodations and paid by anyone who rents a room.

If levied, 50 per cent of the revenue must be shared with a not-for-profit tourism organization and used to increase visitation and visitor spending in the community.

"We have told all of our staff that it is abundantly clear we need to provide relief to our businesses and our residents. So if there are tools our there that can help us with that, let's explore them, let's have conversations," said David Denault, the town's chief administrative officer.

On June 15, council authorized staff to investigate the implications of implementing such a tax. This includes preparing a draft bylaw and establishing a working group to provide input on the bylaw.

"I do want to know what the hoteliers think about it ... and take that input into consideration" said Mayor Stewart Strathearn.

"If I am sitting here being asked to consider something in the budget, I want to be able to know that I am making (a decision) based on facts from the people who are going to participate."

Coun. Cher Cunningham agreed with the mayor.

"Many municipalities in the county are debating this question right now and going out to their accommodation (providers) to see if we can make this something that has a powerful, positive impact on attracting tourists to the area," said Cunningham.

Barrie, Orillia and Huntsville are among those that have already implemented the tax.

Not everyone on council was on board with the idea.

Coun. Bill Gordon was offended by the notion. "We are coming out of a pandemic. We are still flopping like a dead fish trying to revive the economy and businesses, we have runaway inflation, increased interest rates ... there are a lot of headwinds for the municipality."

The motion was narrowly approved with a 5-4 vote.