West Nipissing council is being asked to consider introducing a hotel tax with part of the revenue going toward tourism projects.
The request is from the local chamber of commerce.
Chamber spokesman Jordan Baker told council, municipalities have the power to apply the special tax thanks to Bill 127, a piece of legislation passed by the former Liberal government last year.
The legislation lets at least half of the revenue collected go to a non-profit group, like a chamber to promote tourism.
Baker told council that if the special hotel tax was introduced, the local chamber would want to manage the funds for tourist-related projects.
Baker said the municipality would keep the remainder and could use the money for projects as it sees fit like infrastructure and tourism, but he added the chamber hoped the municipal share would be used on tourism.
Baker presented several scenarios to council on how much money the tax could generate annually based on 50 percent occupancy.
He said a four percent tax would generate $206,000 while a three percent tax would give revenue of more than $154,600.
A tax of two percent would yield annual revenue of just more than $103,000.
Baker pointed out that all this revenue would be outside money coming into the municipality.
He also told council that Sudbury is introducing the tax this September and that other nearby communities, including North Bay, were also looking at it.
Baker wants to see council strike an agreement in principle which would give the chamber the chance to test out the feasibility of the hotel tax.
He adds one of the first things that would happen after the agreement is approved is the formation of a tourism committee.
The chamber’s hope is to have the specialty tax in place for 2019.
Council’s initial reaction to the suggestion was most members opposed it because councillors don’t like the notion of the public getting hit with another tax.
Council will debate the request at its committee meeting in September.
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