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Welcome to Toronto! The New 4 Per Cent Tourism Tax

When visiting another city, my favourite part is going to bed each night excited about what the following day will bring.

There’s nothing like waking up in a different city each morning, looking out the window and seeing a day full of possibilities! Whether the day ahead will be spent exploring the new city’s restaurants, attractions and/or nightlife, being in a new city is always refreshing!

However, as of July 1, the sense of excitement experienced when staying in a Mississauga hotel will come at a higher cost.

City of Mississauga’s Newly Implemented 4 Per Cent Hotel Tax

After advocating for a hotel tax for years, the City of Mississauga finally got its wishes when City Council approved the 4% accommodation tax last winter, which was implemented as of July 1. A similar tax has been in place in Toronto since April 1.

Passed by the Province of Ontario, Bill 127, The Stronger, Healthier Ontario Act (Budget Measures) 2017 is new legislation that allows cities to collect a municipal transient accommodation sales tax (MAT), also known as a hotel tax.

Not only does the hotel tax apply to hotels, motels and bed and breakfasts, but short term rentals such as AirBnB will also include the additional tax.

This means that almost 60 properties, plus various short term rentals, will now be collecting this new tax.

New Hotel Tax Expected to Bring Many Benefits to Mississauga

The new hotel tax is expected to bring in $10 million each year, with half of the revenue going to Tourism Toronto – the region’s official destination marketing organization. The remaining half of the revenue will be used by the City of Mississauga to implement recommendations from the city’s “master plan.”

Together, the City and Tourism Toronto will use the extra funds to attract more visitors and increase the area’s tourism. Besides developing and maintaining tourism-related infrastructure, improvements will be made to tourism programs and services as well as economic development initiatives.

In short, more visitors to Mississauga equals more hotel stays. The city’s cultural attractions, festivals and sporting events are also expected to benefit from this new tax.

The new tax is consistent with Mississauga’s easterly neighbour, Toronto – where it has been in place since April 1. Applying a hotel tax in Mississauga ensures the city’s local hotels remain competitive.

Experience Mississauga’s Finest Furnished Apartments

Although staying in a hotel is always a great option, my favourite way to experience a new city is by using a short term rental. If you plan on visiting the Greater Toronto Area in the near future, check out Platinum Suites, the nicest furnished apartments in Mississauga!

By Sarah McKenzie

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