Lake of Bays council is reviewing options to modify the short-term rental bylaw, and that includes collecting a new tax.
In the Tuesday, Dec. 12 council meeting, Lake of Bays staff brought forward a report recommending changes to the current bylaw.
Staff suggested 12 changes, including collecting the Municipal Accommodation Tax from STRs.
“(Collecting the tax) is an option that the council chose not to select when we went through the program initially. The main reason was that the tax affects everybody — you cannot just dedicate it to short-term rentals. It would affect resorts, the bed and breakfasts, or anybody who rents out, other than long-term,” Stephen Watson, director of building and bylaw services told council.
The proposed tax could be 3.5% of the rental fee, and according to the report, the township does not have a mechanism to implement or collect this tax.
The report also highlights that 50% of the revenue from this tax is “to be shared with one or more eligible tourism entities to be used for the exclusive purpose of promoting tourism.”
Council was split on the idea.
“Personally, I don’t want to collect it. I can’t see the advantage of taxing the resorts more than they already charge,” said Coun. Robert Lacroix. “(Not collecting it) gives an advantage to Lake of Bays, now that we are three and a half per cent cheaper than Huntsville or Bracebridge — so the resorts may fill up even more. I wouldn’t be in favour of collecting.”
Coun. George Anderson joined Lacroix by saying he is not in favour but would like more information.
However, this may be an opportunity to create an “economic driver,” according to Mayor Terry Glover.
“If we split half the revenues, we can create an economic driver … if we work with them (resorts and other STRs), we’ll have a better relationship. You will see us grow,” said Glover.
“I’m in favour of exploring it further to see if it is an advantage or a disadvantage … (the tax) is happening everywhere. All the towns are adding it — it isn’t an advantage for us to have no events and no economic driver around rental units.”
Coun. Rick Brooks added he favours collecting the tax, despite some challenges.
“It is an initial inconvenience to the resort owners, but they will see in the long run that it will be an asset to them as well as to the municipality,” said Brooks. “It goes directly into tourism, making it more noticeable that we are here.”
Council directed staff to amend the bylaws related to STR and bring them back for further action.