Despite a public information meeting hosted by the City of Stratford, owners and accommodators still have unanswered questions on a looming new tax.
The City hosted a Municipal Accommodations Tax (MAT) information session on Monday, inviting members of the public, specifically owners of B&Bs and short-term rentals (STR) who have questions about the four per cent tax that will hit the pocket books of visitors to the Friendly City.
Municipal Accommodation Taxes have been in effect across Ontario since 2017, when a provincial regulation allowed municipalities to implement such a tax. They are imposed on visitors to the city and go towards projects that benefit citizens and tourists, such as roads.
In Stratford, discussions around a possible MAT go back a number of years, but it was finally implemented in July, 2022.
Representing the City at the meeting were Karmen Krueger, director of corporate services. Jonathan DeWeerd, chief building official, Zac Gribble, executive director of Destination Stratford and Chris Bantock, deputy clerk.
Sunju Abraham of the Ontario Restaurant, Hotel and Motel Association presented an overview on how to record and pay the MAT.
Most questions came from the Stratford Innkeepers group, a collective of local accommodators that joined the virtual presentation. According to their preliminary comment before the questions, they gathered 28 people representing 23 hotels, B&Bs, and motels.
Through the question period, Sunju and Krueger showed a few exemptions to the MAT. Any full payment made prior to July 1, 2023 will be exempt, as well as any stay over 30 days and any shelter/refuge, it was noted.
It was also revealed that there will not be any compensation to owners for additional administrative work that comes from the MAT.
In terms of how stays are tracked, Krueger explained that there is no format suggested by the City, understanding that everyone has their own system for book-keeping. She stressed that for auditing purposes records will be required.
Stratford Innkeepers inquired about the status of the reserve fund. As per city council’s direction, the money accrued through the MAT will be held in a reserve fund. Its purpose will be established in the future through public input, but STR and B&B owners will not have any more input than the general public.
At the end of the presentation, Stratford Innkeepers indicated that they would like an in-person meeting, as their ‘granular’ questions were not being answered.
Krueger said that she will follow-up with anyone who still has questions post-meeting and indicated that she will look into an additional meeting.
“We do want to try to help make this smooth and easy for you so please do reach out if you need any further assistance.”
A recording of the meeting will be available on the City's website. The MAT takes effect in July of this year.
