With the Province of Ontario’s passage of Bill 127, the Stronger Healthier Ontario Act, municipalities have been authorized to establish a transient accommodation tax within their jurisdictions. The implementation and administration of the accommodation tax is authorized under Section 400.1 of the Municipal Act and Ontario Regulation 435/17 (together with all other relevant laws, regulations, decrees, orders, and by-laws, “Applicable Laws”).
Where a Municipal Accommodation Tax (MAT) by-law is in place, the MAT is mandatory and providers of transient accommodation are obligated to collect the MAT from purchasers of accommodation, and to remit same to the municipality having imposed it.
The proceeds of the MAT must be allocated, distributed, and utilized, in accordance with Applicable Laws.
In Timmins, The Corporation of the City of Timmins has designated the Timmins Economic Development Corporation (“TEDC”) as the organization that will be responsible for allocating and distributing part or all of the proceeds of the MAT (the proceeds transferred the TEDC being the “Municipal Accommodations Tax Fund”). The TEDC has an existing non-profit board with an economic development mandate that has long encompassed tourism.
The purpose of the Municipal Accommodations Tax Fund is to promote and grow the tourism industry in Timmins. To guide investments by the TEDC, Tourism Timmins will develop a “Tourism Development Strategy”.