A New Tax is Coming to the Town of Oakville
A new tax is coming to the Town of Oakville.
This tax will be known as the Municipal Accommodation Tax (MAT) and will be effective as of Jan. 1, 2019.
But what exactly is this tax?
“The MAT is a mandatory four per cent tax which will be charged on all short-term accommodations, with stays of less than 30 consecutive days,” according to a recent press release from the Town of Oakville.
“The tax applies to stays at all hotels, motels, motor hotels, lodges, inns, resorts, bed and breakfasts, or other lodging (including those sold online) in Oakville.”
Fifty per cent of the net revenue from the MAT will go toward the municipality.
The town will put its portion of the proceeds into a reserve that will be used for tourism related projects and initiatives.
The other 50 per cent will go to Visit Oakville where the funds will administered for tourism promotion and development.
“Oakville is a great place to live, work and play,” Mayor Rob Burton said in a recent press release.
“Revenue generated from the MAT will support important tourism-related infrastructure and initiatives, and showcase the town as a key location for travel and investment.”
It is predicted that the MAT will generate annual funding between $500,000 and $1.1 million.
In 2017, the Provincial Budget granted municipalities the authority to implement tax on a variety of accommodations.
This tax has already been implemented in several other areas including Toronto, Mississauga, Ottawa and Niagara Falls.
For more information visit the Town of Oakville website.