Town to have further conversations with TWEPI and Windsor on MAT

Amherstburg town council will continue conversations with Tourism Windsor-Essex Pelee Island (TWEPI) and the City of Windsor regarding a proposed Municipal Accommodation Tax (MAT).

Town council heard a presentation from TWEPI at the May 12 meeting and a request for direction was asked for by Aug. 31. An open house on a possible MAT was held July 22 and, according to a report from deputy CAO/director of development services Melissa Osborne, saw 13 operators of either short-term rentals, hotel owners, bed and breakfast owners and approved hotel investors attend.

The open house saw a presentation made by TWEPI CEO Gordon Orr. 

A value of a MAT has not been determined as of yet, with notes from the open house stating Windsor began with a four per cent tax in 2018 and increased it later to six per cent.

Osborne’s report from the May 12 town council meeting concluded that “MAT can be a valuable revenue stream to offset taxpayer funded tourism activities. The complexity in realizing this revenue for the Town is that the majority of the potential revenue is based in STR accommodations.”

Councillor Linden Crain noted the economic development committee brought up concerns about the launch of such a tax and if it would work.

“I’m definitely interested in hearing what the plan would be and I’m supportive of the recommendation (for further discussions) for further thoughts,” Crain said.

Crain also wanted a report back from administration on what could happen if the town decided to implement a MAT themselves and not go through TWEPI and Windsor. CAO Valerie Critchley said administration could bring back an additional report on that scenario as well.

Deputy Mayor Chris Gibb noted “this is not a done deal” and the town is getting more information. He wondered if the report would discuss what it would look like if other municipalities didn’t take part. Critchley said the report would take all of that in consideration.

Councillor Diane Pouget said the town has received letters from STR owners in commercial areas who have requested exemptions. She said those owners “believe they are paying twice for the same goals, and they are already paying more money than regular STRs just because they are in a commercial area.”

The CAO said the report will include feedback from all accommodation owners but pointed out the tax is not on the property owner but would be paid by guests staying at the establishments.

“It would be collected by the owner and remitted but it is not an additional tax on the property itself,” said Critchley.

Town to have further conversations with TWEPI and Windsor on MAT

By Ron Giofu