Owen Sound plans to host information sessions next week as part of the city’s process for the potential implementation of a municipal accommodation tax.
It’s a fee of up to four per cent levied on short-term accommodations, including hotels, motels, campgrounds and other short-term rentals.
Provincial legislation requires 50 per cent of revenue from a municipal accommodation tax to be used exclusively for local tourism-related initiatives. The other half of funds collected can be used at the municipality’s discretion for services or infrastructure.
A couple of popular summer tourist destinations in the area — Northern Bruce Peninsula and South Bruce Peninsula — have already implemented a municipal accommodation tax.
City council first provided direction to staff in 2021 to look into a municipal accommodation tax. The city is working towards implementation in Owen Sound by Jan. 1, 2024.
“The city is also looking into the possibility of licensing short-term accommodations like AirBnBs and VRBO holiday rentals in Owen Sound, which will be addressed through future consultations,” an advisory from City Hall explains.
Last year, Owen Sound council voted down a proposal to ban most short-term rentals in residential neighbourhoods in the city — with an exemption for owner-occupied bed and breakfast operations. Councillors heard then the issue of short-term rentals would be explored as part of the city’s ongoing study of a municipal accommodation tax.
A report is expected to come to Owen Sound’s corporate services committee next month to provide an update on progress.
Next week, accommodation business operators are being invited to attend one of two sessions being offered in the Bay Room of the Harry Lumley Bayshore Community Centre on Tuesday, April 25, a release from the city says.
