In 2024, total accommodation revenue subject to the MAT, the municipal accommodation tax, was $32 million. The tax on that, including interest, generated about $1.4 million for the County. 

The MAT is a four percent fee on short term accommodations, intended to support tourism-related initiatives and infrastructure. Half of the total revenue stays with the municipality, while the other half is divided between Visit the County and Stay PEC, the County’s destination marketing organizations.

The tax generates reliable annual revenue that Council and staff 
are seeking community input on ways to spend. 
Until last year, the bulk of the 
municipality’s share of proceeds went to repairing the roads.

When Council considered MAT funds during the 2025 budget talks, there was still uncertainty about amounts collected. Staff were dealing with the challenge of illegal STAs, and employing an honour system for those reporting nightly stays and total revenue collected. 

New software called HAMARI, linked to AirBnb and other digital STA platforms, is now being used to track accommodations bookings in the County. 

“We will know if STA owners are submitting the correct MAT tax,” said Rebecca Carter, Financial Services Supervisor. The STA bylaw enforcement staff can use the software to track homes listed for rent on AirBnB and other platforms, but still not licensed.

After $133,000 in administrative costs, the municipality’s share of this year’s MAT comes to $627,729.  Of the other half, $522,749 went to VTC and $104,980 to StayPEC.

In 2023, the tax generated $1,570,000, an increase of about $350,000 from 2022, when the MAT generated $1.2 million. Then Director of Finance Amanda Carter, noting nightly stays had not increased over the previous year, attributed the increase to enhanced enforcement measures. After staffing costs  of $112,000 were subtracted, $1.456 million was shared out. About $728,000 stayed with the municipality and the other half funded StayPEC ($105,000) and VTC ($623,000) for the 2024 fiscal year.

That year, the municipality began suspending STA licenses if owners did not submit the MAT remittance.

Seeking Priorities

During budget talks, Council allocated $110,000 to a service agreement with U-ride, seasonal washrooms in public parks and boat launches, and the PEC arts fund. 

Council further committed $116,000 to Tourism Management Plan projects including a summer transit loop, new road signage, and accessible parking spaces on main streets and in public parking lots. 

The remaining $401,229 will go to the municipal MAT reserve.

The municipality is still considering the best way use its MAT proceeds to optimize tourism and the economic benefits it brings, while offsetting its strains. 

Starting this year, project requests for MAT fund allocation will be integrated into the annual budget process. Staff will also create a standardized template to review requests to ensure they fit into Council spending priorities. 

Public consultations will be held ahead of the 2026 budget talks. The County is looking for community input on the tourism-related projects and the best way to use the funds.