Gravenhurst eyes new accommodation tax
The Town of Gravenhurst is leaning towards implementing a 4% Municipal Accommodation Tax bylaw.
Between November 2021 and January 2022, Tourism Destination Co-ordinator Amy Taylor spearheaded the project reaching out to accommodation operators in Gravenhurst to discuss the benefits and answer questions about the proposed tax.
“Putting a rate on the accommodation portion of a bill creates revenue for the municipality and promotes tourism,” says Amy Taylor. “It will help enhance this sector of the economy without looking to the tax-payers.”
While the parties were not in objection, they raised concerns about how the money would be spent. They also indicated that they would like to have input as to what projects and initiatives would receive funding.
The proposed bylaw would see 60% directed towards a third-party entity with a board of directors and the remaining 40% would go directly to the Municipality for tourism projects and initiatives.
Hotels, motels, bed and breakfasts, licensed short-term rentals and roofed accommodation offering less than 30-day continuous stays would be subject to the tax that may take effect as early as January 2023.
Council was in favor of exploring next steps to develop the bylaw and partnership options.