Guelph takes a step closer to implementing the hotel tax


A few more dollars could soon be added to hotel bills in Guelph.

At its February 7 Committee of the Whole meeting, council voted 11 to 1 in favor of implementing a 4% municipal lodging tax. As previously indicated by the Mercury Tribunecity ​​staff expect this to generate between $500,000 and $850,000 annually, with the funds earmarked to support the city’s tourism industry.

Com. Dan Gibson was the only councilor to vote against the program.

The council first heard about the proposed tax last month, voting to move forward with its implementation for this month.

Cathy Masterton, head of tourism and destination development for the city, said the new tax, at the proposed rate of 4%, would add about $4 to $7 per night to an average hotel stay.

Council also voted in favor of directing staff to negotiate a five-year agreement with the Guelph Chamber of Commerce to implement the new tax.

Shakiba Shayani, president of the chamber, told the council “it’s time to implement the municipal accommodation tax and start working on destination marketing plans that will ensure the viability of the hardest hit areas. over the past two years”.

“We have the organizational capacity to, as they say, start as soon as the council approves the implementation of the (municipal lodging tax),” she added.

This new tax initiative is expected to come back to the council meeting on February 28 for a ratification vote.

What wasn’t decided Monday night is how best to use those funds. Earlier today, Mayor Cam Guthrie and Councilor. James Gordon had posted on their respective social media accounts that they planned to introduce a motion calling for taxpayers’ money to be used to make Guelph a music city.

It’s a great program and GUelph is a perfect fit for it

“A music economy has the potential to generate a wide range of benefits for their communities, from economic growth, job creation and increased spending to increased tax revenues and cultural development”, Guthrie wrote in a blog post.

“A music city strategy is key to a thriving music economy, which provides a range of benefits to communities of all sizes, including economic growth, job creation, tax revenue and cultural development.

Clack-Bush acknowledged on Monday that there have already been discussions between the city and the nonprofit agency Music Canada about this strategy as a potential avenue.

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