Photo by Shutterstock/ksenchik30
Officials in Norfolk County are continuing to study the potential introduction of a Municipal Accommodation Tax, commonly known as a MAT, along with new regulations for short-term rental properties.
During a recent council meeting, staff presented follow-up information outlining how a new tax and regulatory framework could work, including enforcement, governance and financial impacts.
Council approved the measures in principle, directing staff to conduct public consultation before returning with updated recommendations.
Short-term rentals — many listed through platforms like Airbnb and VRBO — have grown significantly in the county in recent years.
Currently, the properties operate without a formal registration system, safety inspections or zoning compliance requirements.
Staff say that lack of oversight can create challenges for residential neighbourhoods while also creating an uneven playing field for traditional accommodation providers such as hotels and motels.
A proposed short-term rental by-law would introduce a registration system for operators, inspections and enforcement requirements.
Meanwhile, a four per cent Municipal Accommodation Tax could generate significant revenue from visitors staying in local accommodations.
According to staff estimates, Norfolk County’s accommodation sector generates roughly $17.6 million in annual guest revenue.
Under a base scenario, the tax could generate about $704,000 per year. Provincial rules require that half of the revenue be used for tourism marketing while the other half can be used for tourism infrastructure projects.
Officials say the funding could support destination marketing as well as visitor-related infrastructure projects such as signage, waterfront improvements and public amenities.
Staff recommend hosting a public information session later this year before bringing a revised proposal back to council for consideration.