Peterborough Tourism Municipal Services Corporation

On June 24, 2019, Council passed By-law 19-063 establishing a 4% transient accommodation tax (aka municipal accommodation tax or MAT). In 2023, the City collected approximately $863,000 net MAT. The City is entitled to retain as general revenue 50% net MAT which is currently being used to financially support the City’s capital program. O.Reg. 435/17 compels the City to pay annually the remaining 50% of its net MAT to an “eligible tourism entity” (ETE). O.Reg. 435/17 defines an ETE as “a non-profit entity whose mandate includes the promotion of tourism in Ontario or in a municipality.”

It is proposed to incorporate a municipal services corporation as an eligible tourism entity to redirect to the City the net 50% transient accommodation tax that the City is required to remit annually to an eligible tourism entity.

Business Case Study Section 6 of O.Reg. 599/06 requires a municipality to adopt a business case study before it establishes an MSC. The proposed Business Case Study is shared on this page under the Information section.

Section 8 of O.Reg. 599/06 requires a municipality to consult with the public about the proposal to establish a MSC. This is the consultation. Staff will report back to Council in open session about the results of the consultation for its consideration on whether to adopt the Business Case Study.