The Municipality of Wawa's looking into a new tax on short-term accommodations.
In last night's Committee of the Whole meeting, CAO/Clerk Maury O'Neill explained a "Municipal Accommodation Tax" is recommended by the Municipality's Strategic and Tourism Plans, noting a number of other communities have implemented one - including Chapleau, Marathon, Sault Ste. Marie, Greater Sudbury, and Thunder Bay - commonly set at 4%, though Council could choose a different rate.
O'Neill noted preliminary estimates suggests the tax could bring in about $500,000, further explaining that - under provincial legislation - 50% of the funds raised go to municipal coffers.
O'Neill explained the other half of the funds would need to go to a third party who would use it for tourism purposes only, though she noted there are a number of possibilities on that front, including a destination marketing organization - which Council could establish - though she also noted Chapleau's partnered with the Superior East Community Futures Development Corporation to distribute those funds.
Councillor Mitch Hatfield questioned how the Municipality would know about local B&Bs, with O'Neill acknowledging there are tracking issues but staff have a list and have been watching online postings - supplemented with local knowledge - further encouraging those local to self-identify or report.
In last night's regular meeting, Council approved a resolution directing staff to continue exploring the business case for implementation of the tax - including meeting with stakeholders and looking into what entity would receive half of the funds raised, possibility of rebates, and a potential appeal process - then report back to Council to consider whether to move forward and in what form.