Timmins approves increase to Municipal Accommodation Tax, raising rate to 6%

Timmins city council has approved a 2% increase to the city’s Municipal Accommodation Tax, raising the charge on short-term overnight stays to 6%, according to a city news release posted April 15.

The city applies the tax to accommodation charges for stays of less than 30 consecutive days. The increase and the planned allocation of part of the revenue could affect how tourism-related tax dollars are split between tourism promotion and other municipal priorities.

Under the change, the city plans to reserve 1 percentage point of the 6% tax for Timmins’ proposed multi-use recreation centre.

“The increase is intended to generate revenue for recreation infrastructure projects,” Mayor Michelle Boileau said in the release.

The city’s policy divides Municipal Accommodation Tax revenue between tourism-related spending and other municipal use. The release says 50% of total revenue supports eligible tourism initiatives and organizations through the Timmins Economic Development Corporation. The other 50% is reserved for use by the municipality at council’s direction.

The city did not say when the new 6% rate will take effect. It also did not provide a timeline for the proposed multi-use recreation centre.