Lake of Bays to implement MAT tax

Half of the money will go to the Township and the other half is for promoting tourism

Lake of Bays Council agreed to implement a Task Force for the new Municipal Accommodation Tax (MAT) program, in the April 8, 2025, meeting.

Economic Development Coordinator, Morgan Lonsdale, said the purpose of creating the Task Force is for guidance on planning and consultation before staff present the By-law in the fall. She said the group can add value to the process, allowing for “a more informed decision.”

According to her report, “The Taskforce will function as an advisory body offering valuable insights and recommendations to both staff and Council on By-law, policies, and spending priorities.”

It adds, “It’s role will ensure the tax effectively supports the community’s objectives, while also advising it’s management and distribution.”

MAT is charged to temporary renters (no more than 30 days) of hotels, motels, lodges, inns, air bnbs and licenced short-term rentals, according to the report. And the money collected by the provider will be remitted to the Township.

It continues that half of the money will go to the Township and the other half is “to be shared with one or more eligible tourism entities to be used for the exclusive purpose of promoting tourism.”

In last November’s Council meeting, STR providers and resort owners expressed concerns and opposition about implementing MAT and the potential impact it can have on their customers, thus reducing business.

Staff also reported that 199 community members provided feedback about the new program in their survey last fall, with 187 being from STRs and 12 from resorts. However, according to their report the feedback was primarily for clarity regarding how the funds will be collected and concerns about how the partnership selection process will take place.

Next month staff will appoint members of the Task Force, which will include 12 members, including 2 community members.

Councillor, Rick Brooks, said that given the Township includes 4 areas (Dwight, Hillside, Dorset, and Baysville) and with only 2 community members included in the Task Force, that leaves 2 areas not represented. He said it should be 4 “to mitigate concern that only some areas get money…to ensure everybody gets considered.”

The CAO, Geof Carleton, who will lead the Task Force, said that 2 is enough for now and that the issue can be “handled within the Task Force if needed moving forward.”

Council agreed to start with staff recommendations of the current members.

Between June and September ongoing discussions will continue about the economic development plan regarding priorities, tourism, partnerships, By-law, policy, tax rates, and revenue distribution.

Staff will present a By-law and recommendations to Council in October, after publicly sharing their report for 3 weeks.

The Township is scheduled to begin collecting the MAT January 2026.