A hotel tax could generate a $1 million a year for the City of Timmins, according to a report in this week’s council agenda.
Staff is recommending that council adopt a four-per-cent municipal accommodation tax, effective Jan. 1. The revenue would be used to promote tourism development.
If approved, it would apply to all hotels, motels, cottages and short-term accommodations within the City of Timmins. It wouldn’t apply to campsites and campgrounds, or university and college residences.
In Timmins, the city says there are about 1,000 guest rooms at 16 providers, including hotels, motels and cottages.
“A Municipal Accommodation Tax at the rate proposed of four per cent is estimated to potentially generate approximately $1 million plus annually. The revenues would be shared between the municipality and tourism not-for-profits for tourism promotion, which is defined to include product development,” reads the report.
For Tourism Timmins, the report says it could mean significant annual funding for product development supporting sport and corporate event bid support and hosting, financial capital investments in large scale community tourism infrastructure, cultural event development and ongoing support, financial support program for new product development.
“While the city’s use of its share of the revenues, consisting of the other 50 per cent of taxes to be generated, is unrestricted, in keeping with the spirit of the tax, the City of Timmins could support a number of council-approved plans that would contribute to tourism product development that have no source of funding such as a multi-use recreation centre, festival infrastructure such as a permanent stage or a wayfinding plan,” reads the report.
You can read the full report here.
Council meets Sept. 25 at 6 p.m. in council chambers at city hall.
