Mississauga estimates it would rake in as much as $58 million on its short-term rental tax by 2023. That money will be sunk into tourism-related projects around the city.
The revenue is coming from the city’s Municipal Accommodation Tax (MAT), a four per cent levy charged on rental lodging provided for 30 days or fewer in the city.
Money from the MAT represents around one per cent of Mississauga’s projected $926.1 million in revenue in 2020 and is slated to support tourism-related projects. In 2020, 50 per cent of the funds will also be allocated to the city’s new tourism organization, which will establish incentives to host events, market Mississauga and other tactics to help boost tourism. Under Ontario law, municipalities that opted for a MAT tax must contribute to a non-profit organization promoting tourism locally or in the province.
MAT funds will support arts, culture and sports initiatives.
MAT has contributed to 10 initiatives in the city so far, including culture grants, the 2018 Mississauga Rotary Ribfest, 2018 Italfest and the Avro Arrow replica project in Paul Coffey Park.
The Arrow project, to which council pledged $1 million in MAT funds, is the largest project funded in part by the levy to date. Many believe that the money spent on it is wasted. -CINEWS