Greater Napanee Council has voted to introduce a Municipal Accommodation Tax (MAT) beginning in 2026. The tax will apply to hotels and motels in the town.
Treasurer Ellen Hamel presented a report estimating that a four per cent tax could generate about $180,000 annually, with roughly $81,000 net after administrative costs. Half of the revenue must go to a non-profit tourism organization to promote tourism, with the remainder retained by the municipality.
The decision follows years of study and public consultation. Council first discussed the tax in September 2023 and held consultations with local residents, business owners, and accommodation operators in early 2024. Concerns about affordability and administrative workload delayed implementation.
Six hotels and motels will be required to collect the tax and submit quarterly remittances to the town. Staff will track payments and enforce compliance.
Council expects the MAT to help support local tourism and generate additional revenue. Full implementation of the new tax is planned by mid-2026.
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