The Township of Nipigon is implementing a Municipal Accommodation Tax (MAT) as of October 01, 2024. A Municipal Accommodation Tax is a tax imposed by a local government or municipality on the price of overnight accommodations in its jurisdiction. Typically applied to hotels, motels, and other lodging establishments, this tax is collected from guests at the time of their booking. The primary purpose of the MAT is to generate additional revenue for the municipality to support various initiatives, such as tourism promotion, tourism infrastructure, and tourism product development, which directly or indirectly benefit both visitors and residents alike.
By implementing this tax on accommodations, municipalities can fairly distribute the costs of hosting tourists and maintaining tourism-related amenities, all without burdening local residents with increased taxes.