Hotels already under pressure from Airbnb now may have to contend with a possible hotel tax.
Mississauga council estimates that move could rake in about $16 million, an amount sorely needed at a time when the city is looking to increase property taxes and balance the books without having to slash the budget by eliminating programs.
With 10,000 rooms in Mississauga, taxed at five per cent, early estimates predict the city could generate $16 million, based on an average daily rate of $140.
This tax is in addition to the 13 per cent Harmonized Sales Tax already charged to hotel rooms.
Making it more expensive for families and business executives to stay at hotels could end up making a section of people who would otherwise choose to stay in Mississauga opt for another city like Milton or Brampton. Hotel guests typically visit restaurants and malls and spend hundreds of dollars. Those are the dollars that could end up being lost if hotel rooms become even more pricier.