Hotel tax increase for London [Video]

London might soon increase the municipal tax charged on each night spent in a hotel room or short-term accommodation (Airbnb, Bed & Breakfasts, etc.).

On Tuesday, a motion by Deputy Mayor Shawn Lewis and Budget Chair Elizabeth Peloza called on the Strategic Priorities and Policy Committee (SPPC) to recommend increasing the Municipal Accommodation Tax (MAT) from the current 4 per cent to 5 per cent by Jan. 1, 2026.

“This would be the first increase we’ve seen here in London, realizing other cities have already raised theirs,” Budget Chair Elizabeth Peloza told colleagues.

The 4 per cent MAT charge has not increased since London implemented a hotel room tax Oct. 1, 2018.

Some other Ontario municipalities have increased their MAT rate in recent years, including Toronto (6 per cent), Mississauga (6 per cent), Kingston (5 per cent), and Ottawa (5 per cent).

The revenue is divided evenly between Tourism London …