The Municipality of Kincardine is moving ahead with a detailed investigation into the implementation of a Municipal Accommodation Tax (MAT) and licensing regulations for short-term rental accommodations (STRA), as part of a broader effort to support tourism, strengthen local infrastructure, and address concerns tied to the growing short-term rental market.
The MAT, introduced in Ontario in 2017, is a tool that allows municipalities to collect a tax on overnight stays of 28 days or less at hotels, motels, and short-term rental platforms like Airbnb and VRBO. In Kincardine, the tax is being studied with a proposed rate of four per cent, consistent with many other municipalities in the province. If implemented, early estimates suggest the MAT could generate between $328,000 and $580,000 annually, including projected revenue from both traditional accommodations and short-term rentals.
In tandem with the MAT, municipal staff are also reviewing a licensing framework for short-term rental accommodations. The goal of the STRA licensing program would be to ensure that such properties operate safely and in compliance with municipal bylaws. Licensing would also allow the municipality to better understand how many homes are being used for short-term rental purposes, data that may have implications for housing supply and neighbourhood dynamics. Issues such as noise, parking, garbage collection, and compliance with the Ontario Building Code are all expected to be addressed through the proposed licensing bylaw.
Kincardine joins a growing list of Ontario municipalities (now numbering around 50) that have implemented or are considering a MAT, including South Bruce Peninsula and the Town of the Blue Mountains.
Preliminary timelines suggest that if Council moves forward, the short-term rental licensing program could be in place by January 2026, followed by implementation of the MAT by January 2027.