The City of Stratford is shedding more light on a new Municipal Accommodation Tax.
Earlier this month, Stratford City Council approved in principle the creation of the mandatory tax for accommodators in the city.
Officials say the fee, levied on short-term, overnight accommodations, helps support local tourism and is paid by visitors when they book a room at a local hotel.
The city hasn’t determined how much the rate will be yet, but other municipalities in Ontario who have it in place charge 4%.
The city says at least 50% of the net revenue from the tax must be shared with an eligible not-for-profit tourism entity and reinvested in tourism promotion.
In Stratford, that portion would go to the Stratford Tourism Alliance with the remainder going to the municipality, and placed in a reserve fund for uses to be determined by city council.
You can click here to learn more about the tax.