By Adolch, CC BY-SA 3.0, via Wikimedia Commons

WINDSOR, Ont. — Councillors with the City of Windsor, Ont. are mulling a hotel tax for the city, reports The Windsor Star. The proposed tax is a $4 fee to be applied to all overnight hotel stays.

New provincial legislation that came into effect in December allows cities to impose a tax on hotels, motels and other places where visitors stay, with the proceeds to be split between the municipality and the local tourism entity.

A report prepared for the city lists 35 hotel/motels in Windsor for a total of approximately 2,300 rooms. In determining annual revenue of $2 million, the report relied on an average occupancy rate of 60 per cent, with an average daily rate of $100 per night.

Windsor councillor Rino Bortolin says establishing a tourism fund would prove beneficial when various delegations approach council for bid money to try and lure events to the area.

Tony Elenis, president and CEO of the Ontario Restaurant Hotel & Motel Association, says he expects hotel taxes to spread across Ontario.

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