Reporter’s Notebook: Chamber of Commerce Pleads for Delay in Accommodation Tax Expansion

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By John Francis, Bruce Peninsula Press

Tobermory Chamber of Commerce held its spring AGM at the Princess Hotel in Tobermory on Tuesday, May 30.

The Chamber tabled a motion (to be voted on at the next General Meeting) to change its name to Tobermory and Northern Bruce Peninsula Chamber of Commerce.

Three members of MNBP’s Municipal Council were present: Mayor Milt McIver and Councillors Aman Sohrab and Smokey Golden. They got an earful.

Paid parking remains a contentious issue among Tobermory’s business community. Chamber members complained that the whole point of paid parking had been to build a large, full-featured parking lot, and that six years later there isn’t even a plan for one.

Mayor McIver pointed out that MNBP has been trying for many years to get the provincial Ministry of Transport property on Hay Bay Road — which would be perfect for a large parking lot — but that property cannot be transferred until the First Nations Land Claim is settled. A property on Brock Street in the village was purchased on behalf of Tobermory’s Parking Reserve fund but there are difficulties and limitations on that property as well.

The Mayor explained that “what I hear from ratepayers is that tourism should pay for tourism”. Paid parking was a way to defray increased costs for bylaw enforcement and other services.

Chamber President Griffin Salen requested that Council consider shortening the paid parking season — beginning it on June 15 and ending on September 15. 

Chamber members discussed the municipality’s proposed extension of the Municipal Accommodation Tax (MAT) to include hotels, motels, B&Bs etc. (The 4% MAT currently applies only to Short-Term Accommodations, that is, residential properties that are rented for periods of less than 30 days.) A number of suggestions were made — a lower MAT tax rate on commercial properties, a higher MAT tax rate on STAs, rejecting the MAT extension.

Mayor McIver explained that the MAT extension would also help to answer ratepayer demands for “tourism to pay for tourism”.

But there was strong consensus amongst chamber members that the proposed implementation date — July 1, 2023 — is unreasonable. Accommodation operators pointed out that many stays are paid in full at the time of reservation. It would be very bad PR to demand more money from people who have paid in full.

On the subject of having something obvious to show for six years of paid parking, Chamber members unanimously affirmed that building the Minch Anchor deck/viewing platform at the head of Little Tub Harbour is their highest priority and asked the municipality to expedite building it. The deck would create a public space along the edge of the low cliff on the south side of the harbour.

UPDATE: A resolution passed at MNBP Council’s May 23 Meeting called for the MAT extension bylaw to be presented for a vote on June 12. There is no such bylaw in the Agenda for June 12, which means it cannot be passed at that meeting. Council may choose to discuss the MAT extension under “Other Business”. ASSUMPTION: A July 1 implementation date would appear to be off the table. By implication, this would mean that for 2023, the MAT would continue to apply only to STAs.

Municipal Accommodation Tax Association of the Town of South Bruce Peninsula

The Town of South Bruce Peninsula has engaged McQueen Galloway Associates to conduct public and stakeholder consultations to create “a comprehensive and sustainable 5-year tourism strategy (and 1-year action plan)”. … “The project is scheduled to take place through spring and summer 2023, with the final strategy delivered in late August. Interviews with key tourism stakeholders have already commenced and will continue throughout the duration of the process.”