Prince Edward County pushing back start of Municipal Accommodation Tax

A new Municipal Accommodation Tax was set to take effect June 1, but councillors in Prince Edward County are holding off on putting the new tax in place.

Council met virtually on Wednesday night and passed a bylaw to apply a 4% MAT tax to short-term accommodations but held off in setting an implementation date.

Council originally approved the motion to put this tax in place back in March, but due to the COVID-19 pandemic, they were unable to pass the by-law.

Mayor Steve Ferguson said these are extraordinary times and he wanted to see this matter deferred.

The Prince Edward County Accommodations Association estimates a loss of gross sales of $7,464,895 and 266 employees affected between April 1 to August 31.

The COVID-19 pandemic has had a drastic impact on the County’s local economy; including tourism and accommodations industries.

Director of Community Services, Programs and Initiatives Todd Davis says by passing the bylaw it will allow some of the other work that is required with the implementation of the MAT which is necessary.

He says the approval of the by-law will allow the finance department the necessary time required to put appropriate resources into place to administer the taxation process.

The additional time will also allow staff to consult with accommodations industry for direct industry input regarding an appropriate and opportune time to enact the tax.

Davis said the date of enactment would be determined at a later date with operators being given minimum 90 days notice prior to implementation.

He said a staff recommendation to council would come forward only after the provincial closure order has been lifted and the local economy is showing signs of recovery and interest in tourism has returned.

 The motion passed unanimously.