The City of Dryden is about to become the latest northwestern Ontario community to introduce a Transient Accommodation Tax for visitors staying in Motels and Hotels.
Council agreed in principle Monday night to implement a 4% tax starting on January 1st.
That’s the same rate charged in Kenora, Fort Frances and Thunder Bay.
Chief Administrative Officer Roger Nesbitt says it’s exciting for the community as it provides a new revenue stream.
Nesbitt believes the tax will bring in roughly $400,000 a year.
Half of the funds will be earmarked for tourism initiatives, while the other half will go to the municipality.
Nesbitt says “The 50% that goes to the tourist entity is used exclusively for the promotion and development of tourism within the municipality.”
He adds “The portion that comes back to the municipality, it can be used for virtually any budgeted expenses within the municipality.”
Nesbitt notes a number of great ideas have already been discussed.
Some on Council talked about a new to improve infrastructure, including roads and buildings.
Others talked about a need to upgrade facilities including the Arena, Pool, Ball Diamonds and other recreational complexes.
Supporting our youth, youth programming and community well-being initiatives was also a major focus with those at the table.
Nesbitt says a Committee will be looking at all recommendations once the program is rolled out.
Council is expected to formally approve the tax on August 26th,
Nesbitt says the tax is well supported in the community and among businesses.
A recent survey conducted by the City found 134 out of 151 respondents, or 89%, were in favour of the City implementing a Municipal Accommodation Tax.
Nesbitt says there are some exemptions to the 4% tax:
-Charitable, non-profit philanthropic corporations organized as shelters for the relief of the poor or for emergency
-Tent or trailer sites supplied by a campground
-Accommodations supplied by a tourist camp
However, Bed and Breakfasts and Airbnb’s would be subject to the tax.
