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What's Coming Up at Council: Newmarket eyes tax on accommodations

Town estimates tax could bring in more than $600,000 annually, half would be tourism dedicated; water rate increases also on the agenda
Joseph Quigley
Joseph Quigley
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File photo

The Town of Newmarket is exploring the creation of an accommodation tax on hotels and short-term rentals to generate more revenue.

Town council will discuss initiating public consultation on the concept at its June 26 meeting.

Council will also discuss increasing tax rates on water and wastewater and addressing a petition for traffic control on Carol Avenue.

Here is what NewmarketToday will be following:

Municipal Accommodation Tax

The municipality is looking at a new tax on the hospitality sector that it estimates could be more than $600,000 annually.

Newmarket staff are bringing a proposal for a tax, which could apply to hotels and rental services like Airbnb. Already in place in 45 Ontario municipalities, the tax would have to be a 50-50 split between the municipality and a designated tourism organization under provincial legislation. 

“Given the current economic climate and financial pressures facing municipalities across the province, a significant number of municipalities have now implemented a MAT (municipal accommodation tax) program,” a staff report said. “Should Newmarket implement a MAT program, the revenue generation has the potential to be significant.”

The report said the town could use these revenues to better promote tourism, creating a municipal services corporation to do that. 

Staff said the town previously explored the idea in 2019 and early 2020, but that work was sidelined due to the pandemic. 

The proposed resolution is for staff to explore the idea further, start public consultation and bring back a report in the year's fourth quarter. 

Water rate increases

Your water bills in Newmarket could go up by more than $1,000 on an annualized basis over the course of the next decade.

Council is set to approve the 10-year water and wastewater plans. The plans outline an annualized seven per cent increase in water and wastewater charges, which would raise the average annual cost of water and wastewater (based on an annual 200 cubic metres usage) from $1,459 in 2024 to $2,682 by 2033.

Stormwater rates are also proposed to go up by 10 per cent annually, which could raise a bill on an average lot from $61.05 in 2024 to $143.95 in 2033.

The staff report said these increases factor in asset replacement, a capital inflation cost supplement due to rising construction costs and York Region’s increased costs on treatment services.

“These financial plans provide a framework in achieving financial sustainability for the next 10 years,” a staff report said.

Traffic control petition

Newmarket will be studying traffic calming measures on Carol Avenue at the behest of residents who have petitioned for it.

Councillor Bob Kwapis presented the petition June 19 and requested a staff study. The petition details the concerns of residents on Avenue Road and Carol, who feel that traffic at the intersection has become an issue and makes it hazardous to cross at times. 

The town is streaming the council meeting at 1 p.m. You can view the meetings live at newmarket.ca/meetings or attend at 395 Mulock Dr. You can also arrange a deputation or send correspondence by messaging [email protected].