Collingwood introduces an AirBnB taxThe Municipal Accommodation Tax (MAT) is not new to Ontario; it started back in 2017 with the province legislating the new option to help municipalities fund tourism-related activities. Collingwood's new MAT goes into effect on March 1, 2025.
4% adds up
Collingwood's new tax is 4% and will be applied to any accommodation fee for stays lasting less than 28 days in duration. AirBnBs, short-term rentals, hotel and motel room - all of them just got a little bit more expensive. As life keeps getting more expensive, this isn't going to help those who have a need to travel and may, in aggregate, reduce total revenues to landlords as demand takes a proportional cut.
Where will the tax revenues go?
Every municipality makes its own decisions as to how to apply their new found bounty and Collingwood is no different. That being said, unless properly managed, it's easy to imagine the funds getting lost in the many existing demands on city and town budgets. Whether the dollars actually make it to tourism-related activities that helps those same landlords offset the hit to demand will only be revealed in time - a lot more time than most of them would like.
The intention is good
In towns like ours and Collingwood this new source of funds can do a lot of good. Wasaga needs a lot of money to fund the Beach Area 1 redevelopment, for example; Collingwood is a lot more mature, but so are its demanding tourists. If the dollars actually do make it to their intended activities, we'll all benefit in the long run.
Got a question?
The Municipal Accommodation Tax (MAT) is not new to Ontario; it started back in 2017 with the province legislating the new option to help municipalities fund tourism-related activities. Collingwood's new MAT goes into effect on March 1, 2025.
4% adds up
Collingwood's new tax is 4% and will be applied to any accommodation fee for stays lasting less than 28 days in duration. AirBnBs, short-term rentals, hotel and motel room - all of them just got a little bit more expensive. As life keeps getting more expensive, this isn't going to help those who have a need to travel and may, in aggregate, reduce total revenues to landlords as demand takes a proportional cut.
Where will the tax revenues go?
Every municipality makes its own decisions as to how to apply their new found bounty and Collingwood is no different. That being said, unless properly managed, it's easy to imagine the funds getting lost in the many existing demands on city and town budgets. Whether the dollars actually make it to tourism-related activities that helps those same landlords offset the hit to demand will only be revealed in time - a lot more time than most of them would like.
The intention is good
In towns like ours and Collingwood this new source of funds can do a lot of good. Wasaga needs a lot of money to fund the Beach Area 1 redevelopment, for example; Collingwood is a lot more mature, but so are its demanding tourists. If the dollars actually do make it to their intended activities, we'll all benefit in the long run.