Starting July 1 next year, visitors to Mississauga will be seeing an extra line on their hotel bill.
On November 1, municipal council approved, in principle, the introduction of a new tax. It’s a result of Bill 127, passed earlier this year by the Ontario government. The “Stronger, Healthier Ontario Act” allows municipalities to charge a transient accommodations tax, also called a hotel tax.
The four per cent hotel tax is expected to generate $9.8 million for the city.
“This new revenue tool is an opportunity for the City of Mississauga to generate important funds that will be reinvested in an accountable, transparent and dedicated way toward undertaking important city-building initiatives to grow and diversify our local economy, strengthen our tourism industry and showcase our many celebrated attractions, festivals, heritage, culture and businesses,” said Mayor Bonnie Crombie, in a news release.
“Mississauga hotels are essential to our tourism activities and it’s important for them to know how the city is going to use the money it collects,” said tourism advisory board chairperson Pat Saito. “We are already working closely with Tourism Toronto to build tourism in Mississauga. Our goal is to use the tax to attract more visitors and generate more hotel stays all of which will make our local economy stronger.”
In addition to hotels, city officials are also looking at the possibility of introducing a similar tax on private, short-term vacation rentals.
The recommendations will go to council for final approval on Nov. 8 with a final report expected to go back to the general committee in the new year.