Prince Edward County to look at Municipal Accommodation Tax

Prince Edward County is getting on board with a municipal accommodation tax.

Staff are recommending a mandatory 4% MAT tax that would apply to all “roofed accommodations provided for a continuous period of 30 days or less”.

The Acting Director of Community Development and Strategic Initiatives Todd Davis says the MAT tax would help grow their investment in the tourism industry without increasing taxes for local residents.

He says a tax of 4% is consistent with neighbouring cities and regions and across the province.

The provincial government in 2017 gave municipalities the authority to impose a tax on transient accommodations. Under the legislation, 50% of MAT funds must be used by the municipality for infrastructure or services that support tourism. The remaining 50% is to be used by an eligible tourism entity to support tourism promotion and development.

Staff proposes a phased approach to implementing a MAT. During the first phase, it is recommended that the municipality begin collecting the tax as of June 1, 2020.

During the second phase, staff would undertake public and industry consultation in order to inform recommendations to bring to council regarding how MAT funds should be spent.

A special Committee of the Whole meeting will be held on Thursday, February 27 at Shire Hall to discuss the MAT tax.