The Town of Petawawa has decided to impose a new Municipal Accommodation Tax (MAT) that will appear on hotel bills beginning in the new year.
The MAT is being adopted by five hotels in Petawawa, which will charge an additional three percent on guests’ bills.
The purpose of the tax is to generate additional money for local recreation and tourism-based initiatives.
It was first presented to municipalities by the Ontario government in 2017, but no towns in Renfrew County chose to take it on.
The Town of Petawawa says it was recently approached by local hotels about implementing the MAT, which will come into effect Jan. 1, 2025.
The City of Pembroke also recently approved a MAT on local hotels at a four percent rate.
The town estimates the new tax will generate approximately $200,000 in 2025, 50 percent of which will be allocated to the Ottawa Valley Tourism Association and be used to specifically promote tourism within Petawawa.
Short term rental properties, such as Airbnb’s, will not be subject to the new accommodation tax.
More to come