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Request for Decision

Implementation of the City of Greater Sudbury's Municipal Accommodation Tax (MAT)



Presented To: Finance and Administration Committee
Presented: Tuesday, Jun 19, 2018
Report Date: Thursday, May 31, 2018
Type: Managers' Reports



Signed By

Report Prepared By
Lorraine Laplante
Manager of Accounting
Digitally Signed May 31, 18

Division Review
Ed Stankiewicz
Executive Director of Finance, Assets and Fleet
Digitally Signed May 31, 18

Financial Implications
Jim Lister
Manager of Financial Planning and Budgeting
Digitally Signed May 31, 18

Recommended by the Department
Kevin Fowke
General Manager of Corporate Services
Digitally Signed Jun 1, 18

Recommended by the C.A.O.
Ed Archer
Chief Administrative Officer
Digitally Signed Jun 4, 18

Resolution

Resolution #1:

THAT the City of Greater Sudbury approves the implementation of the Municipal Accommodation Tax effective September 1, 2018;

AND THAT the City of Greater Sudbury set aside the City’s net portion of the Municipal Accommodation Tax in the “Tax Rate Stabilization Reserve – Committed” for expenditure on Council approved projects as outlined in this report;

AND THAT the City of Greater Sudbury update the Reserve and Reserve Fund by-law to create a new Obligatory Reserve Fund titled “Municipal Accommodation Tax - CGSCDC” to hold the portion of the MAT payable to an eligible tourism entity until such time as an agreement has been entered into and all conditions for advance as outlined in the report entitled "Implementation of the City of Greater Sudbury's Municipal Accommodation Tax (MAT)", from the General Manager of Corporate Services, presented at the Finance and Administration Committee meeting on June 19, 2018 have been complied with;

AND THAT the necessary by-laws be prepared.

Resolution #2:

THAT the City of Greater Sudbury delegates authority to the Executive Director Finance, Assets and Fleet to negotiate and enter into a contribution agreement with The City of Greater Sudbury Community Development Corporation, as outlined in the report entitled "Implementation of the City of Greater Sudbury's Municipal Accommodation Tax (MAT)", from the General Manager of Corporate Services, presented at the Finance and Administration Committee meeting on June 19, 2018.

Resolution #3:

THAT the City of Greater Sudbury delegates authority to the Executive Director Finance, Assets and Fleet to negotiate and enter into an agreement with Airbnb to collect the Municipal Accommodation Tax from its members and remit to the City of Greater Sudbury on their behalf, as outlined in the report entitled "Implementation of the City of Greater Sudbury's Municipal Accommodation Tax (MAT)", from the General Manager of Corporate Services, presented at the Finance and Administration Committee meeting on June 19, 2018.

Relationship to the Strategic Plan / Health Impact Assessment

This report supports Council’s strategic pillar of Responsive, Fiscally Prudent, Open Governance.

Report Summary

On February 6, 2018, the Finance and Administration Committee approved the implementation of a Transient Accommodation Tax. This report serves to provide information regarding the industry consultation, review of best practices in other municipalities and the recommended implementation and administration of the Municipal Accommodation Tax (MAT).

Financial Implications

The costs associated with administering and collecting the MAT in 2018 is estimated at $25,000. The annual costs to administer and collect the MAT will be offset by the in-year MAT revenue collected estimated to be $425,000. For 2019, the MAT revenue is estimated at $1,700,000 and the related administration and collection costs are estimated to be $100,000. The remaining revenue will be shared 50/50 between the City and the eligible tourism entity as per legislation. The additional revenue to the City will be used to offset costs associated with the Arena/Event Centre in accordance with the 2018 Council approved Business Case.