Madawaska Valley Township will not be implementing a Municipal Accommodation Tax any time soon.
Mayor Kim Love told My Barry’s Bay Now that a number of issues stop the township from collecting the tax. She says that while the taxes would affect local hotels in the area, the challenge would be how the township would tax Air BnB’s, where users can rent out accommodations in an app for a low rate. The tax would require the township to figure out how many rentals these places did and bill appropriately. Love agrees that if implemented properly, this would raise a fair amount of money for the Township.
However, Love says the effect on staffing was too much for the Township to handle at the moment. She says that because most services are complaint driven, a lot of staff would have to pursue a lot of different businesses. Love says that the township has only just gotten their feet on the ground staffing-wise, and this would place an extra burden on them. On top of that, workload is already increasing, as several new developments are currently underway in the township. She also cited that with the township hiring relatively new staff like a CAO and a Treasurer, extra work would not be sustainable at this time.
Staff said that if another township found a good way to administer the tax, they may be open to it. However that would also require South Algonquin Township and Hastings Highlands to act as well. She also says that public input for the tax has been extremely negative, and says she wants to make sure local businesses stay competitive. Love says she has only heard of one business that had positive things to say about the tax. She says that a future council would have to decide if they would implement the tax.